FMCG major Dabur India received a notice for intimation of Goods and Services Tax (GST) unpaid amounting to Rs. 320.6 crore, along with interest and penalty, according to the company exchange filing on October 17. The company affirmed to its shareholders that there will be no impact on its financial, operation or other activities due to this intimation. 

The company’s official filing stated that it had received intimation of GST short paid or not paid ascertained as being payable amounting to Rs 3,20,60,53,069 from the Directorate General of Good and Services Tax Intelligence, Gurugram Zonal Unit. 

The company is advised to settle this shortfall by remitting the specified amount along with applicable interest and penalty. Non-compliance may lead to a show cause notice, as outlined in the regulatory filing.

Dabur intends to challenge the GST discrepancy claim with a robust response and supporting evidence presented to the relevant authorities. It’s important to note that this tax notice has no immediate impact on the company’s daily operations; consequences relate to the final determination of tax liability, along with potential interest and penalties.

The company is set to release its Q2FY24 results on November 2, 2023. In the first quarter of FY24, Dabur reported a consolidated net profit of Rs 456.61 crore, a 3.52% YoY growth. Its total income during the June quarter rose by 10.85% to Rs 3,240.25 crore, compared to Rs 2,922.98 crore YoY. Sequentially, the total income increased by 15.78%.