United Breweries Limited (UBL) has received a tax demand order from the Maharashtra State Goods & Service Tax Department, levying a total of Rs 21.22 crore for the financial year 2020–21. The order includes an additional tax of Rs 10.04 crore, interest of Rs 9.46 crore, and a penalty of Rs 1.72 crore.
According to the company’s disclosure to stock exchanges on April 1, the order was issued by the Deputy Commissioner of State Tax, Raigad Division, under Section 9(2) of the Central Sales Tax Act, 1956. The demand has been raised due to non-submission of ‘C’ declaration forms for concessional tax rates and for Central Sales Tax (CST) levied on debit notes raised by UBL on various state beverage corporations such as West Bengal State Beverages, Telangana State Beverage Corporation, and Karnataka State Beverage Corporation, linked to reimbursement of state excise duties.
UBL stated that it believes it has a strong case to contest the matter before the relevant appellate authority. The company expects no material financial impact from the order, apart from a minimal statutory pre-deposit required during the appeal process.
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