GST Showdown: Jagran’s ₹3.3M Tax Twist Sparks New Compliance Drama

Image Source: Business Standard

Jagran Prakashan Ltd, the parent company of Dainik Jagran, has again come under the tax limelight. The Central GST and Excise department has issued the company a fresh Show Cause Notice (SCN) of paying ₹3.3 million, along with interest and penalty.

Key Highlights:

The SCN is linked to the purported lack of GST payments, although the period of assessment is yet to be revealed.

The amount of ₹3.3 million comprises the tax amount as well as the penalty incurred.

This comes after a series of earlier GST-related notices, such as an earlier withdrawn June 2024 summons of ₹202.83 crore.

Regulatory Context:

The notification has been issued under the Central Goods and Services Tax Act, 2017.

Jagran Prakashan would be obligated to reply within the time frame, either by making the payment or dispute the claim in a legal manner.

The firm has made no public announcement regarding this new notice yet.

Background Snapshot:

Jagran Prakashan has operations in 13 union territories and states and has print, out-of-home, digital, and radio media operations.

Despite regulatory issues, the company posted a year-on-year growth of 4.18% in consolidated revenue during FY24 at ₹1,933.91 crore.

Implications:

While the ₹3.3 million demand is fairly modest relative to previous cases, it illustrates continued scrutiny of carryover tax positions.

Shareholders and investors will be watching closely the financial and legal response of the company.

Sources: NDTV Profit, Economic Times LegalWorld, Reuters, CAClubIndia, OnlineTaxUpdate