The notice was issued by the Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) on October 16, the company said.

"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. 3,20,60,53,069/- has been advised to be paid by the company along with the amount of applicable interest and penalty under Section 74(5) of COST Act, 2017, failing which show cause notice will be issued," the exchange filing noted.

The tax demand notice will have no major impact on the financial, operation or other activities of the company, Dabur clarified. "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.

Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!

"The company will challenge the same based on strong merits by way of filing its reply/submissions before the relevant authorities," Dabur further noted.

The update related to the ₹320.6 crore-tax demand notice was issued by Dabur shortly before the end of market hours. At the closing bell, the shares were valued at ₹540.60 apiece on the BSE, up 0.65 percent as against the previous day's close.

Dabur, which is yet to release the quarterly results of July-September period, informed the exchanges on October 6 that the recovery in FMCG consumption has been gradual due to later than usual festive season and slightly defecient monsoon rains.

In Q1FY24, the company's net profit rose 3.5 percent to ₹456.6 crore from ₹441 crore in the year-ago period. The consolidated revenue in the same period increased by 11 percent to ₹3,130.5 crore from ₹2,822.4 crore.