FirstCry's parent Brainbees Solutions completes GST inspection

Brainbees Solutions Limited, the parent company of FirstCry, completed a four-day Goods and Services Tax (GST) inspection that began on November 6, 2024.

The inspection, carried out by the Assistant Commissioner of State Tax, Investigation-C, Mumbai, focused on discrepancies found between GST returns (GSTR-3B and GSTR-2A) over four financial years—2018-19, 2019-20, 2020-21, and 2022-23.

The company disclosed this in a filing to the stock exchanges on November 10.

Settlement payment of Rs 1.74 crore

The company stated that it paid Rs 1.74 crore, which included interest, to address these discrepancies as part of the inspection's findings.

The payment resolved all issues noted by the GST department, including concerns related to GST implications for expenses linked to the company's Initial Public Offering (IPO).

Brainbees clarified that these expenses were incurred during the issuance of new shares, and the company provided appropriate explanations to address officials' inquiries.

Assurance of cooperation and business continuity

Brainbees emphasized its full cooperation with GST officials during the inspection and affirmed that it responded to all requests for information.

The company assured stakeholders that, aside from the financial impact of the settlement, the inspection did not disrupt its business operations.

"This has not impacted the operations of the Company, which are continuing as usual," Brainbees noted in its official statement.

The Pune-based company operates as India’s leading children’s goods retailer, providing a wide range of products for parents and children up to 12 years old, both online and through its physical stores.