Dabur India Faces Tax Notice of Rs 320.6 Crore Under CGST Act

Last updated: 18 October 2023


Dabur India, one of the country's leading consumer goods companies, has received a tax notice under Section 74(5) of the Central Goods and Services Tax (CGST) Act, 2017. The notice states that the company is liable to pay Rs. 320.6 crore due to GST discrepancies – taxes that were either short-paid or not paid.

The company has been advised to rectify this shortfall by making the necessary payment, including applicable interest and penalties. Failure to address this issue could lead to the issuance of a show cause notice, as per Dabur's regulatory filing.

Dabur India Faces Tax Notice of Rs 320.6 Crore Under CGST Act

Dabur India, however, has announced its intention to contest the GST discrepancy claim on solid grounds. The company plans to present a comprehensive response along with evidence to the concerned authorities. It's worth noting that this tax payment notice is not expected to have any immediate impact on Dabur's financial or operational activities. Any consequences will depend on the final determination of the tax liability, which includes potential interest and penalties.

In a separate development, Dabur recently celebrated the successful completion of one of the largest and most complex cloud migrations in the industry. This strategic move was aimed at enhancing the company's business resilience and strengthening its control over its IT operations. By adopting a cloud-only model, Dabur is now equipped with a 360-degree oversight across all its operations, resulting in improved efficiency, transparency, and agility. This transition is expected to benefit retailers, partners, employees, and consumers.

In the stock market, Dabur India's shares closed at Rs 540.20, marking a 0.61 percent increase on the National Stock Exchange (NSE).

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