Dabur has got a Rs 271.6 crore tax demand from the Judicial Assistant Commissioner, Chandigarh. In an exchange filing, the FMCG company stated that, along with the Rs 271.6 crore tax, the authorities have demanded an equal penalty amount and applicable interest.
As per the exchange filing by Dabur, the company first received the tax demand notices in October and November 2024 and July 2025 from the Directorate General of Goods and Services Tax Intelligence, Gurugram and the Additional Commissioner, the Central Goods and Services Tax Commissionerate, Chandigarh.
Dabur’s appeal status
After that, on July 29, 2025, Dabur appealed against the tax demand in the Office of the Commissioner (Appeals), COST Appeals Commissionerate, Chandigarh. At the time of the appeal, the total tax demand from the company was Rs 320.6 crore. In its latest order on September 23, the Jurisdictional Assistant Commissioners of Chandigarh passed an order in the direction of the Appeals Commissioner to the company to pay Rs 271.6 crore in tax and the same amount in penalty.
What does the tax demand mean for Dabur
While the immediate appellant authority has rejected Dabur’s appeal, the company has stated in the exchange filing that it is seeking legal opinion and will take appropriate steps available under the applicable laws, including filing an appeal with the Tribunal.
Furthermore, Dabur stated that this order has no impact on operations or other company activities. The company added that the financial impact will be limited to the extent of final tax liability as may be ascertained by higher forums, along with interest and penalty.
While the company has decided to go to a higher appellate authority, including the Tribunal against the tax demand order, if the company’s appeals get rejected in the Tribunal, a massive Rs 271 crore tax payment and the same penalty payment will prove a significant problem for the FMCG company, whose net profit in the last quarter was Rs 514 crore.