Jubilant FoodWorks (JFL), the operator of Domino’s and Popeyes restaurants in India, has received a show cause notice from the Goods and Services Tax (GST) Department proposing a tax demand of Rs 46.9 crore, according to a regulatory filing.
The notice alleges that the company incorrectly disclosed the reversal of input tax credit (ITC) in its Goods and Services Tax returns, resulting in a proposed demand of Rs 46,90,96,051.
“The company has received a show cause notice (SCN) from the GST Department proposing a GST demand amounting to Rs 46,90,96,051,” the filing said. JFL, the flagship company of the Jubilant Bhartia Group, said it would contest the notice, maintaining that the tax authorities had not adequately considered the company’s submissions.
“The company believes that the SCN issued has not considered the merits” of the submissions filed by the company. “The company is in the process of filing detailed objections within the stipulated timelines as per the SCN. Post such filings, the impugned SCN and proposed demand is likely to be dropped,” it said.
The company further clarified that the matter relates only to the presentation or classification of input tax credit reversal in its GST filings and does not have any financial implications. JFL said the “alleged wrong presentation/classification of ITC reversal” has “no financial impact” on the company.
According to the filing, the company received the show cause notice on 13 July.
