Tax notices leave a bitter taste for several chocolatiers, bakers
While individual tax dues of the entities under the scanner may not be very large, the tax liability of the industry, excluding penalty and interest, could add up to more than Rs.1,000 crore, according to the people cited earlier. Experts, however, said that the matter involved a dispute of classification and the DGGI's actions might be challenged in the court of law.
The Directorate General of Goods Services Tax Intelligence (DGGI) has issued notices to around a dozen large bakeries and chocolatiers across India for underpayment of tax for the July 2017-March 2023 period, said people familiar with the development.
These companies were paying 5% GST, but the DGGI maintains that they need to be taxed at 18% since they are not restaurants. "These entities are not restaurants and are liable to pay GST at the rate of 18%," said a senior official, who did not wish to be identified.
