United Spirits receives ₹1.13 crore GST notice from Kerala Government
United Spirits receives ₹1.13 crore GST notice from the Kerala government. The company has decided to appeal to higher authority, as per BSE filing. Shares closed lower on January 8.
Global spirits maker Diageo-owned subsidiary, United Spirits Limited, said that the company received a goods and service tax (GST) demand order worth ₹1.134 crore from the Kerala Government on Tuesday, January 7, according to an exchange filing.
According to the filing data, the period under review for the GST order is from September 2017 to March 2020.
“The company has received a demand order for non-payment of GST under the Reverse Charge Mechanism for establishment charges paid to the state excise authorities in Kerala,” said the company in the BSE filing on Wednesday, January 8.
The company intends to file an appeal with the appropriate higher authority to challenge the demand of the GST order, said the spirits maker.
United Spirits' GST Demand
The Office of State Tax Officer, Taxpayer Service Circle in Alappuzha, Kerala, has directed the company to pay ₹1.134 crore in GST payment to the State government.
The amount of the tax due is ₹36.4 lakh, on which the State has imposed a penalty of ₹36.4 lakh added with an interest of 40.6 lakh, adding which will bring the total amount owed to ₹1.134 crore, as per the filing data.
“Based on the company’s risk-assessment, it has a good case and hence does not expect any material financial implications,” said United Spirits in the official filing.
What does United Spirits make?
United Spirits is a subsidiary of Diageo, a global spirits brand. In India, the company operates multiple liquor brands, including Johnnie Walker, McDowells, Royal Challenge, Smirnoff, Godawan, Gordons, Signature, Black and White, and Don Julio.
United Spirits Ltd's shares closed 3.14 per cent lower at ₹1,575.75 after Wednesday's market session, compared to ₹1,626.80 at the previous market close. The company filed the information of the GST notice after market operating hours on January 8.
The company's shares touched their 52-week high mark at ₹1,700 on January 3, 2025, while the 52-week low level was at ₹1,055.65 on February 6, 2024, according to BSE data. The spirits maker currently has a market capitalisation of over ₹1.14 lakh crore, as of January 8.
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First Published:8 Jan 2025, 09:39 PM IST
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