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Barbeque Nation Loses Appeal on GST Penalty Order

Barbeque Nation loses GST penalty appeal before the Joint Commissioner of Commercial Taxes (Appeals)-3, Bengaluru, for ₹1.25 crore (₹1,25,49,464) under GST provisions related to Tran-1/Input Tax Credit (ITC).  

by Damodharan N

Updated Jul 26, 2024

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Barbeque Nation Loses Appeal on GST Penalty Order

Barbeque-Nation Hospitality Limited has announced that it has lost its appeal against a GST penalty order. On July 25, 2024, the company received the decision from the Joint Commissioner of Commercial Taxes (Appeals)-3 in Bengaluru, which upheld the earlier order from the Deputy Commissioner of Commercial Taxes.

The original order, issued on January 11, 2024, demanded a total of ₹1,25,49,464 (1.25 Cr Rs) for tax, interest, and penalties under the Central Goods and Services Tax Act, the Karnataka Goods and Services Tax Act, and the Integrated Goods and Services Tax Act. This demand related to the use of Tran-1/Input Tax Credit (ITC) for the period from November 2017 to March 2018.

Barbeque Nation had appealed the order, but the appeal was dismissed. The company is now evaluating the order and considering its next steps. The financial implications of the penalty amount to ₹1,25,49,464  (1.25 Cr Rs) which may impact the company's financial position.

The company has disclosed these developments as per SEBI regulations and will continue to update stakeholders on any further actions or changes.

Source Here

Market Reaction 

After Barbeque Nation announced its GST penalty appeal loss on the NSE at 1:39 PM today, the stock price initially stood at ₹538. Despite the negative news, the price surged, reaching an all-time high of ₹552 by 2:30 PM.

By 3:57 PM, the price settled at ₹549. This unusual price increase may be due to speculation that the company might receive some leniency if it continues to appeal. Traders should be cautious as intraday price movements can be unpredictable, and further developments should be monitored closely when trading resumes on Monday.

NSE live share price Here   

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Barbacue Nation

Barbeque Nation, founded in 2006, is a leading casual dining chain in India known for its unique “over the table barbeque” concept, where guests can grill their own barbecue at their tables. With around 200 outlets in India and a few international locations, the chain offers a fixed-price, all-you-can-eat dining experience with a variety of Indian and international cuisines.

Barbeque Nation is recognized for its customer-focused service and has received several awards, including being named one of India’s top workplaces and best buffet by various organizations. 


Barbeque Nation Loses Appeal on GST Penalty Order - FAQs

1. What was the amount of the GST penalty imposed on Barbeque Nation? ​​​​​​​

The penalty amounted to ₹1,25,49,464 (₹1.25 crore).

2. Which authority issued the original GST penalty order?

The original order was issued by the Deputy Commissioner of Commercial Taxes.

3. What date did the Joint Commissioner of Commercial Taxes (Appeals) dismiss the appeal?  

The appeal was dismissed on July 25, 2024.

4. What was the reason for the GST penalty?        

The penalty was related to the use of Tran-1/Input Tax Credit (ITC) for the period from November 2017 to March 2018.

5. When was the original GST penalty order issued?  

The original order was issued on January 11, 2024.

6. What steps has Barbeque Nation taken following the dismissal of their appeal?  

The company is evaluating the order and considering its next steps.

7. How does this GST penalty affect Barbeque Nation's financial position?  

The penalty of ₹1,25,49,464 may impact the company's financial position.

8. What regulations require Barbeque Nation to disclose this information? ​​​​​​​

The company disclosed this information as per SEBI (LODR) Regulations.

9. Has Barbeque Nation received any other orders or notices related to this penalty?

No other orders or notices were mentioned apart from the original and appeal decisions.

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