Jubilant FoodWorks Faces Tax Demand, Files Appeal

Jubilant FoodWorks, the operator of Domino's Pizza in India, has received a Goods and Services Tax (GST) demand order totaling approximately ₹30.72 crore. The notice includes a ₹15.36 crore tax demand, an equal ₹15.36 crore penalty, and applicable interest.

Authorities allege the demand stems from incorrect classification of goods from fiscal year 2019-20 to 2024-25. The company disclosed on March 27, 2026, that it received the order on March 26, 2026, from the Additional Commissioner, CGST, Meerut. The issue reportedly relates to goods supplied between different entities within Jubilant FoodWorks.

Company Disputes Order

Jubilant FoodWorks strongly disputes the tax authorities' claims and stated it anticipates no material financial or operational impact from this demand. This suggests the amount is manageable relative to its business scale and that the company is confident in its appeal.

History of Tax Scrutiny

This is not the first time Jubilant FoodWorks has faced significant tax demands. In March 2026, the company disclosed receiving a GST demand and penalty order totalling ₹95 crore for the financial years 2019-20 to 2021-22, which it also disputed and appealed. Previously, in December 2025, it was ordered to pay ₹81.16 lakh concerning excess input tax credit claims. These incidents suggest tax authorities have been reviewing the company's GST compliance over several periods.

Next Steps and Risks

Jubilant FoodWorks plans to file a formal appeal against the CGST order and expects the demand to be resolved favorably. No immediate financial or operational changes are anticipated. However, the main risk is an unfavorable outcome in the appeal process, which could lead to financial consequences. The tax classification dispute itself represents ongoing litigation risk. Investors will monitor the appeal progress and any further updates.

Market and Financial Context

Jubilant FoodWorks operates in a competitive quick-service restaurant (QSR) market. Peers like Devyani International Ltd. and Sapphire Foods India Ltd. are also major players in India. Like Jubilant, these companies must navigate complex tax regulations and can face similar scrutiny from tax authorities.

For fiscal year 2024, Jubilant FoodWorks reported consolidated revenue of ₹56,960 million (approximately ₹569.6 crore). Consolidated net profit for FY24 was ₹4,008 million (approximately ₹40.08 crore).