iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

United Spirits Faces Rs 7 Crore Tax Demand; Contests VAT & CST Orders

14 Sep 2023 , 02:44 PM

United Spirits’ shares opened 0.5 % higher on the NSE on September 14 following the company’s announcement of VAT & CST assessment orders for FY21, resulting in a demand of approximately Rs 7 crore.

The tax authority rejected the input tax credit claimed by the company on extra neutral alcohol (ENA) purchases, deeming ENA subject to GST. This led to a VAT demand of Rs 98 lakh (including a Rs 12,000 penalty) and CST demand of Rs 5 crore (including a Rs 2,000 penalty).

United Spirits stated its intent to contest these demands through appropriate measures. Additionally, the company filed a writ petition with the Madhya Pradesh High Court challenging the denial of credit for previous financial years. The petition has been admitted, with proceedings temporarily halted.

In a post-earnings press release, Hina Nagarajan, MD & CEO of Diageo India, expressed optimism about the company’s Q1FY24 performance, citing a 13.27 % increase in net profit to Rs 238.20 crore in June 2023 compared to Rs 210.30 crore in June 2022.

United Spirits, a subsidiary of global alcoholic beverages brand Diageo, recently discussed the industry’s shift toward value expansion over volume expansion in an interview with CNBC TV18.

For feedback and suggestions, write to us at editorial@iifl.com.
 

Related Tags

  • cst
  • United Spirits
  • VAT
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Most Read News

SBI Card Q4 Profit Slips 20%
25 Apr 2025|11:17 PM
HUL Q4 Net Profit Rises to ₹2,493 Crore
25 Apr 2025|10:59 PM
Sensex and Nifty in Red on April 25, 2025
25 Apr 2025|02:08 PM
Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.