 "Dabur receives Rs 320 crore GST demand; company to challenge notice")
Dabur, the multinational consumer goods company, has received a goods and service tax (GST) notice demanding Rs 320.6 crore, according to a regulatory filing by the company on BSE. The filing stated that the claim was being reviewed by Dabur and it would be challenged.
The notice was issued by the Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) on Monday, stating that the intimation of tax was payable under Section 74(5) of CGST Act, 2017. The company has been advised to pay Rs 3,20,60,53,069 along with applicable interest and penalty. Under this Act, the dealer may be required to pay up to 15 per cent in penalty. A Show Cause notice may be issued if the company fails to do so.
The FMCG major stated that they would be challenging the notice based on "strong merits by way of filing its reply/ submissions, before the relevant authorities." Dabur added that there has been no impact on its financial operations or any other activities due to the DGGI notice. Moreover, the company assured that the impact of said notice will also be limited to the "extent of final tax liability" along with any interest or penalty issued.
The company disclosed the notice to stock exchanges shortly before market hours ended yesterday. When the market closed, the shares of Dabur were valued at Rs 540.60 apiece on the BSE, up 0.65 per cent compared to the previous day's close.