FMCG giant Dabur received a Goods and Service Tax (GST) demand notice amounting to ₹320.6 crore, according to a regulatory filing made on October 17. This notice, issued by the Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) on October 16, stated that the company had underpaid or not paid the GST amount of about three hundred and twenty crores. The notice further emphasized that Dabur must pay this amount, along with applicable interest and penalty under Section 74(5) of the CGST Act, 2017, failing which a show cause notice would be issued.
Dabur, however, assured stakeholders that the demand notice would not significantly impact its financial stability or operational activities. The company clarified that any impact would be limited to the final tax liability determined, including interest and penalties, if applicable.
Dabur expressed its intention to challenge the demand notice based on what it described as strong merits. The company plans to present its reply and submissions before the relevant authorities in response to the notice.
Dabur, yet to disclose its quarterly results for the July-September period, previously informed the stock exchanges on October 6 about a gradual recovery in Fast Moving Consumer Goods (FMCG) consumption. This recovery, the company noted, was influenced by a delayed festive season and slightly deficient monsoon rains.
In Q1FY24, Dabur reported a 3.5% increase in net profit, reaching ₹456.6 crore compared to ₹441 crore in the same period the previous year. Additionally, the company's consolidated revenue rose by 11% to ₹3,130 crore from ₹2,822 crore in the corresponding period.
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