Brands
Jubilant FoodWorks faces Rs 46.9 crore GST notice, plans to contest
Domino’s operator says tax demand lacks merit as Q1 revenue rises 14.1 per cent
MUMBAI: The latest item on Domino’s menu isn’t a new pizza, it’s a tax notice. Even as Jubilant FoodWorks served up another quarter of steady growth, the QSR giant is preparing for a legal battle after receiving a multi-crore GST demand from tax authorities.
Jubilant FoodWorks, the operator of Domino’s Pizza and Dunkin’ in India, has received a show cause notice from the Goods and Services Tax (GST) Department proposing a tax demand of nearly Rs 46.91 crore. The company, however, said it intends to challenge the notice and is confident the proposed demand will ultimately be dropped.
In a regulatory filing, the company said the GST Department has proposed a demand of Rs 46.9 crore and that it is preparing to submit detailed objections within the prescribed timeline.
Jubilant FoodWorks maintained that it has a “very good case on merits” and will support its response with documentary evidence to counter the allegations made in the notice. The company added that it believes the proposed demand lacks merit and expects the matter to be resolved in its favour.
The tax development comes against the backdrop of a healthy start to FY27. The company reported consolidated revenue from operations of Rs 2,569 crore for the quarter ended June 30, 2026, marking a 14.1 per cent increase over the corresponding period last year.
Its standalone business, led primarily by Domino’s India, posted operating revenue of Rs 1,848.5 crore, up 9.2 per cent year on year.
On the operational front, Domino’s India recorded like-for-like sales growth of 2.5 per cent, signalling continued momentum despite a competitive quick-service restaurant market.
Expansion also remained firmly on the menu. During the quarter, Jubilant FoodWorks added 76 net stores across its brands, taking its total network to 3,712 outlets by the end of June. Of these, 58 new stores were added under the Domino’s India brand, lifting its domestic footprint to 2,513 restaurants.
While the GST notice introduces a fresh legal challenge, the company continues to focus on network expansion and business growth, with management expressing confidence that the tax dispute will not derail its broader growth strategy.
