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Jubilant FoodWorks Ltd (JFL), one of India's largest quick-service restaurant operators, has received a show cause notice from the GST Department proposing a tax demand of Rs 46,90,96,051, according to a regulatory filing by the company.
The GST Department has alleged that the company reversed its Input Tax Credit (ITC) in the incorrect table while filing its GST returns. The notice was received by Jubilant FoodWorks on July 13.
In its filing, the company stated, "The company has received a show cause notice (SCN) from the GST Department proposing a GST demand amounting to Rs 46,90,96,051."
Jubilant FoodWorks further said that it believes the tax authorities have not considered the merits of the submissions already made 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," the company said.
The company also clarified that the alleged issue relates to the presentation and classification of Input Tax Credit reversal and does not have any financial impact on its business. According to the filing, the matter pertains to the classification of ITC reversal in GST returns and not to any underlying tax liability arising from business operations.
