Dabur receives GST demand notice of Rs 320.60 crore

New Delhi: Homegrown FMCG and Ayurvedic products maker Dabur on Tuesday said it has received a Goods and Service Tax (GST) demand notice of Rs 320.60 crore.

The company will challenge the same based on strong merits by filing its reply before the relevant authorities, Dabur India said in a regulatory filing. "The Company has received intimation of tax ascertained as being payable under Section 74(5) of CGST Act, 2017, wherein GST short paid / not paid amounting to Rs 320.60 crore has been advised to be paid by the Company along with the amount of applicable interest and penalty... failing which Show Cause Notice will be issued," Dabur informed.

However, the company -- which owns power brands like Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, and Dabur Lal Tail -- said it will have "no impact on the financial, operation or other activities of the company.

"The impact will be limited to the extent of final tax liability as may be ascertained along with interest and penalty, if any," it added. Shares of Dabur India on Tuesday settled at Rs 540.05 on BSE, up 0.55 per cent.