United Breweries Limited has received an Order from the Maharashtra State Goods & Service Tax Department, Maharashtra, imposing a penalty. There is a delay in submission of disclosure to the exchanges on account of non-availability of Key Managerial Personnel and other relevant stakeholders. Name of the authority: Deputy Commissioner of State Tax, Raigad Division, Maharashtra State Goods & Service Tax Dept. Nature and details of the action(s
taken, initiated or order(s) passed: Order is passed under Section 9(2) of Central Sales Tax Act 1956 Levying Additional Tax of INR 1,198,234,560, Interest- INR 1,150,304,218 & Penalty-INR 288,697,379 totalling to INR 2,637,236,156 for Fiscal Year 2019-20. The demand order has been raised on account of levy of 60% CST on debit notes raised by UBL on Telangana State Beverage Corporation (TSBCL), Karnataka State Beverage Corporation (KSBCL), Andhra Pradesh State Beverage Corporation (APBCL) for reimbursement of state excise duties paid on behalf of State Beverage Corporations for the period April 2019 to March 2020. Demand is also raised on account of non-submission of declaration forms in C & F for concessional rate of tax. The Company believes that it has a strong case to defend the issue before the relevant appellate authority and does not expect any financial impact on the Company except for a minimal statutory pre deposit that is required to be made at the time of admission of appeal. On similar high stacked appeal for the financial year 2018-19 wherein a demand of INR 2,750 million was raised on the Company; the Company has successfully represented at 1st appellate forum and has secured a favourable order with a substantially reduced demand order of INR 70 million. Date of receipt of direction or order,
including any ad-interim or interim orders, or any other communication from the authority is April 1, 2024.