According to a regulatory filing on October 17, FMCG giant Dabur has received a Goods and Service Tax (GST) demand notice for 320.6 crore, and the company is now studying the notification and deciding what to do next.
Dabur has said that it will challenge the tax notice before the authorities
According to a regulatory filing on October 17, FMCG giant Dabur has received a Goods and Service Tax (GST) demand notice for 320.6 crore, and the company is now studying the notification and deciding what to do next.
According to the corporation, the warning was released on 16 October by the Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI).
“The company has received intimation of tax ascertained as being payable under Section 74(5) of CGST Act, 2017, wherein GST short paid/not paid amounting to Rs. 3,20,60,53,069/- 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.
Dabur released the update regarding the tax demand notice for 320.6 crore rupees just before the market closed for the day. The shares' BSE value at the closing bell was 540.60 per share, up 0.65 percent from the previous day's finish.
“The company will challenge the same based on strong merits by way of filing its reply/submissions before the relevant authorities," Dabur further noted in the filing.
Dabur informed the exchanges on 6 October that the rebound in FMCG consumption had been delayed due to a later-than-usual holiday season and slightly insufficient monsoon rains. Dabur has not yet released the quarterly results for the period of July to September.
The company's net profit increased by 3.5 percent to 456.6 crore in Q1FY24 from 441 crore in the same quarter the previous year. In the same period, the combined revenue climbed by 11 per cent to Rs 3,130.5 crore from Rs 2,822.4 crore.