HUL Faces Rs 447.5 Crore GST Demands & Penalties
Jan 01, 2024 23:50
Hindustan Unilever Ltd (HUL) received Rs 447.5 crore in GST demands and penalties from authorities. The demands include disallowed GST credit and salaries paid to expats. HUL will appeal the orders.
New Delhi, Jan 1 (PTI) Leading FMCG maker Hindustan Unilever Ltd on Monday said it has received Goods and Services Tax demands and penalties totalling Rs 447.5 crore from the authorities.
In a regulatory filing, HUL -- which owns brands such as Lux, Lifebuoy, Surf Excel, Rin, Pond's and Dove -- said these "orders are currently appealable" and it will make an assessment.
The company received a total of five orders passed from different zones of GST officials over issues such as disallowance of GST credit, salaries including allowances paid to expats etc on Friday and Saturday last week.
"The Orders were received by the company on 30th December, 2023 and 31st December, 2023, respectively and the intimation is being submitted today i.e. 1st January, 2024, being the first working day after receipt of the Orders," said HUL.
This includes the demand for tax "on salaries including allowances paid to expats amounting to Rs 372.82 crore and penalty amounting to Rs 39.90 crore" from the Joint Commissioner, CGST and Central Excise, Mumbai East
Besides, Deputy Commissioner of Commercial Tax Officer, Bengaluru has issued a demand of tax "on the grounds of excess GST credit availed amounting to Rs 8.90 crore and penalty amounting to 89.08 lakh".
Excise and Taxation Officer, Sonipat, Rohtak, Haryana, has issued a demand order "wherein GST credit amounting to Rs 12.94 crore has been disallowed and a penalty amounting to Rs 1.29 crore has been imposed".
While Additional Commissioner, Central Tax and Central Excise, Kochi Commissionerate has also disallowed GST credit and turnover adjustment amounting to Rs 8.65 crore and imposed a penalty amounting to Rs 87.50 lakh.
According to HUL, 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.
"These Orders are currently appealable & we will make an assessment to exercise our right to appeal," said HUL.
For the financial year which ended on March 31, 2023, HUL (Hindustan Unilever Ltd) revenue was at Rs 59,144 crore.
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