Dabur, the renowned packaged consumer goods maker, reported on October 17 via a regulatory filing that it has been served a Goods and Services Tax (GST) demand notice totaling INR 320.6 crore. The company, recognized for its products such as Real juice and Vatika shampoo, has stated its intent to thoroughly review the notice and consider the optimal steps to take in response.
“The company has received intimation of tax ascertained as being payable under Section 74(5) of CGST Act, 2017, wherein GST not paid amounting to Rs 320.6 crore has been advised to be paid by the company along with the amount of applicable interest and penalty under Section 74(5) of COST Act, 2017, failing which show cause notice will be issued,” Dabur said in an exchange filing.
The company stated that the notice, dated October 16, was issued by the Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI).
Dabur further noted in the filing that “it will challenge the notice based on strong merits by way of filing its reply before the relevant authorities.” The company further clarified that the tax demand notice will have no major impact on the financial, operation or other activities of the company. “The impact will be limited to the extent of final tax liability as may be ascertained along with interest and penalty, if any,” it added.
