For GST irregularities, tax officials demand an extra Rs 3.4 crore from United Spirits

2 Nov 2023 , 02:30 PM

On November 1, United Spirits Limited announced that tax authorities had requested an extra Rs 3.4 crore from the business to make up for the inconsistent tax payments made by the company in July and August of 2017.

As stated in an exchange notification, United Spirits said, ‘We would like to inform you that the company has received Order-In-Original issued by GST authorities wherein tax authority has held that higher rate of 18 percent is applicable on income earned by company on right to use of trademarks provided by it vs 12 percent paid in the month of July and August 2017 and has demanded payment of differential GST liability amounting to Rs 3.4 crore (including interest of Rs 1.7 crore and penalty of Rs 15 lakh).’

The company stated that it has already appealed against similar orders to the Joint Commissioner of Commercial Taxes (Appeals-1), Bangalore, and that it has already received such orders for the period of September 2017 to September 2021.

‘The corporation has been informed that it has a strong case. The company stated that it will challenge the situation and file an appeal with the relevant tax authorities and courts when the time comes.

There is a total demand of Rs 61.2 crore for the period June 2017 to September 2021.

The booze manufacturer continued, ‘The company does not anticipate any material financial implications based on its risk-assessment process.’

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