Brands
Colgate-Palmolive India faces Rs 268 Cr tax demand, plans appeal
MUMBAI: Colgate-Palmolive (India) has found itself in a tax tussle, with the Income Tax Department raising a demand of Rs 267.64 crore for the financial year 2021–22. The maker of some of India’s most familiar bathroom staples, however, is keeping its smile firmly in place.
The company said it has received an assessment order along with a notice of demand from the tax authorities. The bulk of the claim stems from transfer pricing adjustments and the disallowance of certain expenses.
The order was received on December 24, with Christmas Day being a public holiday, prompting the formal disclosure on December 26.
Colgate-Palmolive (India) has made it clear that the matter is far from settled. The company plans to challenge the order before the Income Tax Appellate Tribunal and remains confident about its position.
More importantly for investors and consumers alike, the company says there is no impact on its financials, operations or day-to-day business as a result of the demand.
In short, while the taxman has taken a bite, Colgate insists its balance sheet and business remain squeaky clean.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
