United Breweries hit with demand order worth ₹264.7 crore from Maharashtra GST dept

In a regulatory filing to the stock exchanges today, the Kingfisher Beer manufacturer said, ‘’The Deputy Commissioner of State Tax, Raigad Division, Maharashtra State GST Department passed an order levying an additional tax of ₹1,19,82,34,560, interest of ₹1,15,03,04,218 and penalty of ₹28,86,97,379 — totalling to ₹2,63,72,36,156 for FY 2019-20.”

Also Read: United Breweries Q3 FY24 results: Profit at ₹85.34 crore, Revenue increased by 12.28% YoY

UBL said that the tax demand order passed by the GST department is for fiscal 2029-20 (FY20). ‘’Demand is also raised on account of non-submission of declaration forms for concessional rate of tax,” added the liquor maker.

The demand order has been raised on account of levy of 60 per cent CST on debit notes raised by UBL on Telangana State Beverage Corporation (TSBCL), Karnataka State Beverage Corporation (KSBCL), Andhra Pradesh State Beverage Corporation (APBCL) for  the reimbursement of state excise duties paid on behalf of State Beverage Corporations for the period April 2019 to March 2020,” said UBL in its exchange filing. 

UBL added it believes that it “has a strong case to defend the issue before the relevant appellate authority and does not expect any financial impact on the company except for a minimal statutory pre-deposit that is required to be made at the time of admission of the appeal”.

Additionally, this is not the first instance where UBL has faced such an order from tax authorities. The liquor company recalled a similar situation for the financial year 2018-19 when a demand of ₹275 crore was raised against it. Ahead of the tax demand order, shares of UBL settled 1.50 per cent higher at ₹1,807.55 apiece on the BSE.

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Published: 05 Apr 2024, 09:44 PM IST