Reetu | Nov 25, 2024 |
GST Demand of Rs.31.5 Crore against United Spirits upheld
The Joint Commissioner of Commercial Taxes (Appeal-1) has upheld the demand for Goods and Service Tax (GST) at the rate of 18% on income received by United Spirits Limited in exchange for granting the right to use its trademarks, as compared to the prior rate of 12%.
The order includes a tax of Rs.31.5 crore, a penalty of Rs.3.2 crore, and applicable interest.
The present matter concerns the imposition of GST at the rate of 18% rather than 12% on income received by the Company for the grant of the right to use its trademarks from July 2017 to August 2017.
United Spirits is likely to submit an appeal against the order with the GST Appellate Tribunal once it is established.
“Depending on the company’s risk assessment, it has a good case and hence does not expect any material financial implications,” United Spirits stated in an exchange filing.
Disclosure to be made under Regulation 30 of the Securities and Exchange Board of India’s (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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