Dabur Served with Demand Notice as Defaulted a GST of Rs.320.60

Indian FMCG and Ayurvedic products manufacturer Dabur has been served with demand notices from the GST Authority for failing to pay Rs. 320.60 crore in tax. The company has not remitted GST (Goods and Service Tax) amounting to Rs. 320.60 crore, as acknowledged in its stock exchange filing.

According to the filing, the demand notices are to non-payment of GST. The GST authority has also warned the company to pay applicable interest and penalty, and failing to do so may lead to sending a Show Cause Notice.

“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 320.60 crore has been advised to be paid by the Company along with the amount of applicable interest and penalty… failing which Show Cause Notice will be issued,” Dabur informed.

However, the company announced that this development will not have any impact on its financial, operational or other activities.

“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.

Dabur’s share is down by 0.76% and trading at a price of Rs. 536.15. Dabur is the market leader in many of the ayurveda verticals. Its product portfolio includes famous brands such as Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, and Dabur Lal Tail.