United Breweries Ltd announced on Friday, April 5, that it received a tax demand of ₹263.72 crore from the Maharashtra State Goods & Service Tax (GST) Department.
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In a regulatory filing, the company said, the Deputy Commissioner of State Tax, Raigad Division, Maharashtra State Goods & Service Tax (GST) Dept passed an order under Section 9(2) of Central Sales Tax Act 1956 levying an additional tax of ₹119,82,34,560, interest of ₹115,03,04,218 and a penalty of ₹28,86,97,379 totalling to ₹263,72,36,156 for FY20.
The demand order has been raised on account of a levy of 60% central sales tax (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 reimbursement of state excise duties paid on behalf of State Beverage Corporations for FY20, the liquor maker mentioned.
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“Demand is also raised on account of non-submission of declaration forms in C & F for concessional rate of tax,” the company added.
UBL said that it believes, “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 appeal.”
The company faced a similar instance of receiving an order from tax authorities in the past.
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In FY19, a demand of ₹275 crore was raised against the company, for which it secured a favourable order with a significantly reduced demand order of ₹7 crore.
