Colgate-Palmolive Faces Minor Compliance Penalty After State Tax Search

22 Nov 2023 , 01:59 PM

Colgate-Palmolive (India) Ltd faced a search by the State Goods and Service Tax Officer, Chennai, at its warehouse on November 16-17. A penalty of Rs 1 lakh was imposed for ‘minor non-compliance’ under Section 125 of the CGST Act and SGST Act, unrelated to willful misstatements or suppression by the company.

The search, conducted under Section 67 of the Tamil Nadu Goods and Services Tax Act, 2017, resulted in the discovery of minor procedural non-compliance. Colgate-Palmolive (India) affirmed that its business operations continued without disruption, emphasizing full cooperation with the tax department.

The company highlighted that the penalty was not specific to any intentional wrongdoing, and it was related to procedural lapses.

Regarding the financial and operational impact, the company stated that it is currently unascertainable pending formal show cause notice/demand notice. Despite the search and penalty, Colgate-Palmolive (India) assured that its business continued to function as usual.

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