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.
