“Dabur Faces ₹320 Crore GST Demand Notice, Vows to Contest”
Dabur, the renowned FMCG and Ayurvedic products manufacturer, is prepared to challenge a Goods and Service Tax (GST) demand notice of ₹320.60 crore. The company asserts the notice will not disrupt its operations and will respond based on strong merits.
Dabur, the well-established homegrown FMCG and Ayurvedic products manufacturer, recently disclosed that it has received a Goods and Service Tax (GST) demand notice amounting to ₹320.60 crore. In response, Dabur has confirmed its intention to challenge the notice based on strong justifications, as mentioned in a regulatory filing.
The demand notice has been issued under Section 74(5) of the Central Goods and Service Tax (CGST) Act, 2017, notifying Dabur of a GST shortfall of ₹320.60 crore, which the company is advised to remit along with any applicable interest and penalty. Failure to do so may result in the issuance of a Show Cause Notice.
Dabur, known for its extensive product portfolio that includes power brands such as Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, and Dabur Lal Tail, has reassured stakeholders that this GST demand notice will have no significant impact on its financial, operational, or other activities.
The company’s statement emphasized that the impact would be limited to the extent of the final tax liability as determined, in addition to any associated interest and penalties, if applicable. Dabur appears resolute in its stance to contest the notice and has indicated that it will provide a fitting response in accordance with the merits of its case before the relevant authorities.
In response to this development, shares of Dabur India closed at ₹540.05 on the BSE, marking a modest increase of 0.55 percent. As the company gears up to address the GST demand, it maintains its commitment to its products and its position in the Indian FMCG and Ayurvedic product market.
Dabur’s decision to challenge the GST demand underscores the significance of regulatory compliance and adherence to tax laws, even for established and renowned corporations. It remains to be seen how this situation will unfold and whether Dabur’s position will be vindicated in the ongoing proceedings.
Sources By Agencies
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