Updated January 2nd, 2024 at 13:03 IST
Hindustan Unilever slapped with Rs 448 crore worth GST demands and penalties
The company, in a regulatory filing, highlighted that it has received a total of five orders from different GST officials across various zones.
Hindustan Unilever Ltd (HUL), a leading FMCG manufacturer renowned for brands like Lux, Lifebuoy, Surf Excel, Rin, Pond's, and Dove, disclosed on Monday that it has been served with Goods and Services Tax (GST) demands and penalties amounting to Rs 447.5 crore by the authorities.
The company, in a regulatory filing, highlighted that it has received a total of five orders from different GST officials across various zones. These orders, received on December 30, 2023, and December 31, 2023, cover issues such as the disallowance of GST credit and the inclusion of salaries, including allowances paid to expatriates.
The demands include a tax amount of Rs 372.82 crore and a penalty of Rs 39.90 crore related to salaries and allowances paid to expatriates, issued by the Joint Commissioner, CGST, and Central Excise, Mumbai East. Additionally, the Deputy Commissioner of Commercial Tax Officer, Bengaluru, has imposed a demand for tax of Rs 8.90 crore and a penalty of Rs 89.08 lakh based on excess GST credit availed.
Excise and Taxation Officer, Sonipat, Rohtak, Haryana, has issued a demand order disallowing GST credit amounting to Rs 12.94 crore and imposing a penalty of Rs 1.29 crore. Furthermore, the Additional Commissioner, Central Tax and Central Excise, Kochi Commissionerate, has disallowed GST credit and turnover adjustment totaling Rs 8.65 crore, along with a penalty of Rs 87.50 lakh.
Despite the substantial figures, HUL assured stakeholders that these GST demands and penalties would not have a material impact on its financials or operational activities. The company emphasised that the orders are currently appealable, and it intends to assess and exercise its right to appeal.
For the financial year ending March 31, 2023, HUL reported a revenue of Rs 59,144 crore. The company remains confident in managing the situation and maintaining its financial stability moving forward.
HUL shares closed 0.58 per cent lower at Rs 2648.55 apiece on the NSE on Monday, January 1, 2024.
(With PTI inputs.)
Published January 2nd, 2024 at 08:05 IST