Jubilant Foodworks Receives ₹469 Million GST Show Cause Notice

Jubilant Foodworks Limited is contesting a new tax demand notice from the GST department as the company maintains its current filing processes are accurate.

NOIDA — Jubilant Foodworks Limited, the master franchisee for Domino’s Pizza in India, has received a Show Cause Notice (SCN) from the Goods and Services Tax (GST) department proposing a tax demand of ₹469,096,051. The notice, issued on July 13, 2026, alleges discrepancies related to the reversal of Input Tax Credit (ITC) in the company’s GST returns for the 2026-27 financial year.

In a regulatory filing submitted to the National Stock Exchange (NSE) on July 14, 2026, the company formally acknowledged the receipt of the notice. Jubilant Foodworks stated that it believes the tax authorities have not adequately considered the merits of the submissions previously filed by the company.

Company Response and Legal Standing

Jubilant Foodworks has confirmed it is in the process of preparing detailed objections to the SCN. The company expressed confidence that once its formal responses are filed and reviewed, the proposed tax demand is likely to be dropped.

"The company believes that the SCN issued has not considered the merits of the submissions filed by the company," the regulatory disclosure noted, signed by Company Secretary and Compliance Officer Mona Aggarwal.

This is not the company’s first encounter with tax-related inquiries. In March 2026, the firm faced a separate GST demand of ₹475 million regarding the classification of restaurant services, and in 2025, it faced a distinct challenge involving input tax credit utilization. In those instances, as with the current notice, the company has consistently sought redress through appellate forums and regulatory challenges.

Impact on Operations and Shareholders

Despite the headline figure of approximately ₹469.1 million, the company has historically maintained that such tax disputes do not have a material impact on its ongoing financial operations or store activities.

For investors, the timing of the notice coincides with other corporate developments. The company recently fixed July 17, 2026, as the record date for a dividend payout of ₹1.20 per equity share for the 2025-26 financial year. The SCN is not expected to interfere with the company's planned corporate actions or dividend distribution, which remain subject to shareholder approval at the upcoming Annual General Meeting.

Official Sources Section

The details of the tax notice were disclosed by Jubilant Foodworks Limited in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was officially filed with the National Stock Exchange of India (NSE) on July 14, 2026.

Quote Section

"The company is in the process of filing detailed objections within the stipulated timelines as per the SCN. Post such filings, the impugned SCN and proposed demand is likely to be dropped," organizers stated in the official regulatory filing.

Why It Matters

Tax disputes involving large retail chains and quick-service restaurant operators highlight the complexities of India's evolving GST framework. For businesses, such notices require significant legal and accounting resources to clarify tax positions, particularly regarding input tax credits and service classifications. For consumers, these disputes typically do not affect menu prices or service availability, as the company continues its standard operations while contesting the claims.

Key Facts at a Glance

• Tax Demand Amount: ₹469,096,051 (approx. ₹469.1 million).

• Issuance Date: July 13, 2026.

• Alleged Issue: Incorrect reversal of Input Tax Credit (ITC) in GST returns.

• Company Status: Jubilant Foodworks is preparing formal objections and intends to contest the demand.

FAQ

What triggered the ₹469.1 million tax notice?

The GST department alleges that Jubilant Foodworks incorrectly reversed Input Tax Credit in specific tables while filing its GST returns for the 2026-27 financial year.

Does this notice impact Domino's Pizza operations?

Jubilant Foodworks has indicated that this regulatory filing and the associated tax demand are not expected to have a material impact on its daily business activities, operations, or financial stability.

What is the company's next step?

The company is currently preparing detailed objections to be submitted to the GST authorities. It expects the demand to be dropped once the merits of its case are reviewed.

Source: Jubilant Foodworks Limited - NSE Regulatory Filing