FMCG major Dabur has received a Goods and Service Tax (GST) demand notice to pay Rs 320.6 crore along with interest and penalty. The company is advised to rectify the shortfall by paying the amount. “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,” the FMCG firm said in an exchange filing.
Dabur further added that it is reviewing the intimation and evaluating the next steps in the matter. The company, it said, will challenge the same based on strong merits by way of filing its reply/ submissions, before the relevant authorities.
The FMCG firm said that there will be no impact on financial, operation or other activities of the company due to the intimation of tax being payable. “The impact will be limited to the extent of final tax liability as may be ascertained alongwith interest and penalty, if any,” it said.
The notice was issued by the Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) on October 16, the company said.
Earlier in August, Dabur had posted fiscal first quarter profit at Rs 456.61 core, up 3.5 per cent on-year as against Rs 441.06 crore during the corresponding quarter of FY23. It had posted revenue from operations at Rs 3,130.47 crore, up 10.9 per cent in comparison to Rs 2,822.43 crore during Q1FY23. The company had crossed Rs 3,000 crore mark for the first time in the first quarter driven by strong double digit growth in both HPC and HC businesses.