HUL gets Rs 447.50 crore GST demands and penalties

2 Jan 2024 , 10:42 AM

On Monday, Hindustan Unilever Ltd, a prominent FMCG manufacturer, announced that it has been issued Goods and Services Tax demands and penalties totaling Rs 447.5 crore by the authorities.

Hindustan Unilever Ltd, the FMCG giant with renowned brands like Lux, Lifebuoy, Surf Excel, Rin, Pond’s, and Dove, disclosed in a regulatory filing that it has received a total of five orders from various GST officials in different zones.

These orders, issued on Friday and Saturday last week, pertaining to issues such as the disallowance of GST credit and matters related to salaries, including allowances paid to expatriates. The company stated that these orders are currently subject to appeal and it will conduct a thorough assessment before taking any further action.

HUL stated that it received the orders on December 30, 2023, and December 31, 2023. The company is submitting this notification on January 1, 2024, which is the first working day following the receipt of the orders.

This encompasses a tax demand of Rs 372.82 crore and a penalty of Rs 39.90 crore related to salaries, including allowances paid to expatriates, as issued by the Joint Commissioner, CGST and Central Excise, Mumbai East. Additionally, the Deputy Commissioner of Commercial Tax Officer, Bengaluru, has issued a tax demand of Rs 8.90 crore and a penalty of Rs 89.08 lakh, citing excess GST credit availed.

The Excise and Taxation Officer in Sonipat, Rohtak, Haryana, has issued a demand order disapproving GST credit totaling Rs 12.94 crore and imposing a penalty of Rs 1.29 crore.

The Additional Commissioner at the Central Tax and Central Excise in the Kochi Commissionerate has disapproved GST credit and turnover adjustment totaling Rs 8.65 crore, along with imposing a penalty of Rs 87.50 lakh.

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