United Breweries Limited informed the stock exchanges on Wednesday that it has received tax demand orders from the Kerala State Goods & Services Tax Department, Palakkad, amounting to Rs 18.6 crore, excluding applicable interest. The orders were issued under Section 17(3) of the Kerala General Sales Tax Act, 1963, for the financial years 2022–23 and 2023–24.
The demand notice alleges non-payment of turnover tax on the sale of beer during the mentioned financial years. The company received the communication from the Deputy Commissioner of State Tax on June 10, 2025.
In its exchange filing, United Breweries stated that it has already made adequate provisions for the demand in its financial statements and, therefore, does not anticipate any material impact on its financial or operational performance. The company also noted that it is evaluating legal remedies against the order.
Meanwhile, the company’s shares were trading slightly positive in Wednesday’s session despite the development, reflecting investor confidence in the management’s ability to handle the matter.
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