Jubilant FoodWorks Faces ₹29 Cr Penalty As GST Credit Disallowed

Jubilant FoodWorks Faces ₹29 Cr Penalty as GST Credit Disallowed

Jubilant FoodWorks Limited has received an order from the Maharashtra GST authorities under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017, read with Section 20 of the Integrated Goods and Services Tax (IGST) and Maharashtra Goods and Services Tax (MGST) Act, 2017. The order disallows the company's utilisation of eligible input tax credit against its output tax liability under IGST, CGST, SGST, and Cess.

As per the order, GST credit amounting to ₹14,56,77,211 has been disallowed, along with applicable interest, and an equivalent penalty of ₹14,56,77,211 has been imposed on the company.

Jubilant FoodWorks has announced its decision to challenge the order before the appropriate appellate authority. In a regulatory filing, the company stated, "The order passed has not considered the merits of submissions made by the company and is incorrect in law. Further, the company has a strong case on merits and will challenge the order at appellate forums."