Dabur’s iconic Hajmola Candy — a household name and a post-meal favorite — has landed under the radar of the Directorate General of GST Intelligence (DGGI). And the question that could change everything: Is Hajmola Candy a sweet treat or an Ayurvedic remedy?
As per sources to CNBC-TV18, the DGGI is investigating the GST classification of Hajmola Candy. Why? Because it’s not just a matter of semantics — it’s about tax rates.
Here’s what’s at stake:
- If Hajmola Candy is treated as a regular sugar-boiled candy, it attracts 18% GST.
- But if it's classified as an Ayurvedic medicine, the GST rate drops to 12%.
Now, Dabur claims that Hajmola Candy isn’t just a sweet with tangy flavors—it’s rooted in Ayurvedic principles, aiding digestion and using time-tested herbal ingredients.
And that’s not an empty claim. Hajmola is marketed for its digestive benefits, featuring ingredients like black salt, cumin, and amla—all commonly used in Ayurveda.
But here’s the twist: if DGGI concludes it’s just another candy, Dabur could be liable for paying back higher GST, possibly with penalties.
This isn’t the first time FMCG companies have faced scrutiny over GST classification—and it won’t be the last. The difference in classification doesn’t just affect tax liability, but also pricing, product placement, and brand identity.
So, is this a tax loophole, a misclassification, or a legit Ayurvedic defense?
