Mumbai, February 28, 2025: Jubilant FoodWorks Ltd. (NSE: JUBLFOOD; BSE: 533155) announced today that it has received a demand notice from the Joint Commissioner, CGST & Central Excise, Chennai North Commissionerate, Tamil Nadu, for an amount totaling ₹2,71,54,525, along with a penalty of ₹27,15,452 and applicable interest.
Key Highlights of GST Demand
The order (No. 119/2025-GST CH.N (JC)) issued under Section 73(9) of the Central Goods and Services Tax (CGST) Act, 2017/Tamil Nadu Goods and Services Tax (TNGST) Act, 2017, and Section 20 of the Integrated Goods and Services Tax (IGST) Act, 2017, alleges:- Short reversal of Input Tax Credit (ITC) under Rule 42 of CGST Rules.
- Non-payment of GST under Reverse Charge Mechanism (RCM) on certain royalty payments.
| Particulars | Amount (₹) |
|---|---|
| GST Demanded | 2,71,54,525 |
| Penalty Imposed | 27,15,452 |
| Total Liability (excluding interest) | 2,98,69,977 |
Impact on Operations & Financials
According to the company's official statement, this GST demand does not have a material impact on Jubilant FoodWorks' operations, financial condition, or other business activities.Management stated clearly: "The order passed has not considered the merits of our submissions and hence, is incorrect in law." Jubilant FoodWorks strongly maintains that it has a favorable legal position and plans to appeal the order at the appropriate appellate forums.
Strategic Outlook
The company is confident about its legal stance and believes that the appellate process will substantiate its position. Jubilant FoodWorks has assured stakeholders that normal business operations and strategic initiatives remain unaffected by this development.The details of this regulatory filing have also been disclosed on the company's official website.