Dabur India, a leading domestic FMCG company, has been issued a GST demand notice for Rs 321 crore plus interest and penalties. On October 17, the corporation announced to the stock exchanges.
Dabur stated in a regulatory filing that it is reviewing the tax notice and would take the necessary action following the review.
“The company has got a tax demand notice for Rs 321 crore, including interest and penalty, from the GST authorities. After reviewing the tax notice, the corporation will take the necessary action, according to the filing.
According to reports, the corporation is accused of evading GST on the sale of specific products, which is the basis for the GST demand notice. The corporation hasn’t yet revealed the precise goods or the duration for which demand has increased.
The GST demand notice is a setback for Dabur, whose recent quarters have seen a slowing in sales growth. Following the disclosure of the GST demand notice on Tuesday, the stock price of the company decreased by 3%.
How Dabur would react to the GST demand notice is yet to be seen. The business has two options: pay the demand or contest it in court. The case can go several years if Dabur decides to contest the demand.
Investors are keeping a close eye on this case’s developments because they could have a big impact on the business’s financial success.