HUL receives ₹447.5 crore GST demands and penalties
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.
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Leading FMCG maker Hindustan Unilever Ltd on Monday said it has received Goods and Services Tax demands and penalties totalling ₹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 ₹372.82 crore and penalty amounting to ₹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 ₹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 ₹12.94 crore has been disallowed and a penalty amounting to ₹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 ₹8.65 crore and imposed a penalty amounting to ₹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 ₹59,144 crore.
