Dabur gets GST demand notice of Rs 320.6 crore

Packaged consumer goods maker Dabur has received a Goods and Service Tax (GST) demand notice of Rs 320.6 crore, the company said in a regulatory filing stated on October 17. The maker of Real juice and Vatika shampoo said it is reviewing the intimation and evaluating the next steps in this matter.

“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 notice was issued by the Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) on October 16, the company said.


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.