Company Says It Will Challenge Tax Order Through Appropriate Legal Remedies
New Delhi (Economy India): Jubilant FoodWorks Ltd., one of India’s leading quick-service restaurant (QSR) operators, has received a Goods and Services Tax (GST) demand notice of ₹46.9 crore from the tax authorities.
The company disclosed the development through a regulatory filing, stating that it intends to challenge the order and pursue appropriate legal remedies.
GST Demand Raised
According to the filing, the GST department has issued a demand notice amounting to ₹46.9 crore, including applicable tax, interest, and penalty, relating to matters under the GST law.
While the company did not disclose detailed specifics of the tax dispute, it maintained that it has a strong case on merits.
Company to Contest the Order
Jubilant FoodWorks said it believes the demand is not legally sustainable and will file an appeal before the appropriate appellate authority within the prescribed timeline.
The company added that it expects no material adverse impact on its financial position, operations, or business activities due to the notice.
Regulatory Compliance
The disclosure was made in compliance with SEBI’s listing regulations, ensuring that investors are informed of material developments that could potentially affect the company.
Tax demand notices are not uncommon for large corporations and are often contested through judicial or appellate processes before any final liability is determined.
- Company: Jubilant FoodWorks Ltd.
- GST Demand: ₹46.9 crore
- Issued By: GST Department
- Company’s Response: Will challenge the demand through legal remedies
- Financial Impact: No material impact expected, according to the company
Market Watch
Investors are expected to closely monitor further developments in the case, including the company’s appeal and the response of the tax authorities.
Jubilant FoodWorks, which operates several popular quick-service restaurant brands in India, continues to expand its presence in the country’s fast-growing food service market.
(Economy India)
