No Material Financial Impact Expected, Company to Explore Legal Options
Gurugram, February 5, 2025 – Nestlé India Limited (BSE: 500790, NSE: NESTLEIND) has disclosed receiving an order from the Office of the Superintendent, Central GST Division, Jaipur, Rajasthan. The order confirms a demand for
tax, interest, and penalties amounting to INR 16.87 lakh and INR 17.12 lakh, respectively.
Details of the Order
- Issuing Authority: Superintendent, Central GST Division, Jaipur
- Nature of Action: Demand under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017
- Date of Receipt: February 4, 2025
- Amount Demanded:
- Tax: INR 16,87,653/-
- Penalty: INR 17,12,653/-
- Applicable interest on tax amount
Company’s Response
Nestlé India clarified that
the order does not have a material impact on its financials, operations, or business activities. The company further stated that it
will explore various options to challenge the order, indicating possible legal recourse.
Investor Considerations
Despite the demand, Nestlé India reassured stakeholders that its financial stability remains intact. The company’s decision to challenge the order reflects its commitment to regulatory compliance and risk management.
