FMCG giant Hindustan Unilever Ltd received a Goods and Services Tax (GST) demand and penalties, coming up to Rs 447.5 crore from authorities in five states, a Monday late-night regulatory filing from HUL revealed. The firm can currently appeal against the orders and will make an assessment of the same, the filing stated.
HUL received a total of five orders passed from different zones of GST officials over issues like disallowance of GST credit, salaries including allowances paid to expats, etc on Friday and Saturday in the last week, reported PTI. The company received these orders on December 30, 2023, and December 31, 2023, respectively, and the intimidation was submitted on January 1, 2024, marking the first working day after receiving the orders, the company said.
The notices included the demand for tax on salaries including allowances paid to expats coming up to Rs 372.82 crore and penalty worth Rs 39.90 crore from the Joint Commissioner, CGST and Central Excise, Mumbai East.
Further, the Deputy Commissioner of Commercial Tax Officer, Bengaluru issued a demand of tax on the grounds of surplus GST credit availed coming up to Rs 8.90 crore and penalty worth Rs 89.08 lakh. The Excise and Taxation Officer, Sonipat, Rohtak, Haryana also issued a demand order wherein GST credit amounting to Rs 12.94 crore has been disallowed and a penalty worth Rs 1.29 crore has been levied.
While Additional Commissioner, Central Tax and Central Excise, Kochi Commissionerate also disallowed GST credit and turnover adjustment worth Rs 8.65 crore and levied a penalty worth Rs 87.50 lakh.
The FMCG maker stated that these GST demands and penalties would have no ‘material impact on financial, no impact on operation or other activities of the company due to the intimation of tax payable’. For the fiscal year ended March 31, 2023, HUL’s revenue stood at Rs 59,144 crore.