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| Photo Credit: Reuters
Leading FMCG maker Hindustan Unilever Limited has acquired GST demand and penalties totalling ₹447.5 crore from authorities of five States.
These “orders are currently appealable” and the corporate will make an evaluation for that, in line with a late night time (on January 1) regulatory submitting from HUL, which owns manufacturers equivalent to — Lux, Lifebuoy, Surf Excel, Rin, Pond’s and Dove.
The firm acquired a complete of five orders handed from a number of zones of GST officers over points equivalent to disallowance of GST credit score, salaries together with allowances paid to expats and so forth., on Friday and Saturday final 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,” mentioned HUL.
This consists of 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 requirement 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 requirement 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 additionally disallowed GST credit score and turnover adjustment amounting to ₹8.65 crore and imposed a penalty amounting to ₹87.50 lakh.
According to HUL, these GST calls for and penalties would have “no material impact on financial, no impact on operation” or different actions of the corporate because of the intimation of tax payable. “These orders are currently appealable & we will make an assessment to exercise our right to appeal,” mentioned HUL.
For the monetary yr which ended on March 31, 2023, HUL’s (Hindustan Unilever Limited) income was at ₹59,144 crore.