In a recent development that has garnered significant attention in the business world, Dabur India, one of the country’s leading consumer goods companies, received a notice for a substantial Goods and Services Tax (GST) demand. The notice, issued under Section 74(5) of the Central Goods and Services Tax Act (CGST Act), 2017, indicates that Dabur India is required to pay an outstanding amount of Rs. 320.6 crore.
The GST Tax Notice:
The notice, issued by the GST authorities, asserts that Dabur India has a GST liability of Rs. 320.6 crore, arising from tax shortfalls and unpaid dues. Section 74(5) of the CGST Act empowers the authorities to determine the amount of tax short-paid or not paid by a registered taxpayer, after a proper assessment. This is part of the government’s efforts to ensure tax compliance and revenue collection.
The Company’s Response:
Dabur India has laid out its strategy to contest the GST discrepancy claim on substantial and well-founded grounds. The company plans to present a comprehensive response, supported by evidence, to the relevant tax authorities. It’s essential to note that the notice for tax payment does not have an immediate impact on the company’s financial or operational activities. Any potential consequences will be related to the final determination of the tax liability, encompassing possible interest and penalties.
About the Company:
Dabur Ltd is a prominent Indian multinational enterprise specialising in the production of consumer goods. Established by S. K. Burman in 1884 and the company’s headquarters is situated in Ghaziabad. Dabur is renowned for its production of Ayurvedic medicines and natural consumer products, placing it among the leading fast-moving consumer goods (FMCG) companies in India with Revenues of over Rs. 11,530 Crores & Market Capitalization of over Rs. 96,500 Crore.
Notably, Dabur’s revenue sources are diversified, with approximately 60% generated from the consumer care sector, 11% from its food business, and the remaining percentage hailing from its international business unit. This diversification in revenue streams underscores the company’s robust presence and success in various sectors of the consumer goods industry.
Recently, a report made by ZEE news has alleged that high levels of cancer causing chemicals were found in samples of Dabur Honey. The report also said that the honey had been adulterated with sugar syrup. However, Dabur has denied the allegations, saying that its honey is “100% pure” and that it complies with all government regulations.
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