Hindustan Unilever Ltd, a leading FMCG manufacturer, has received GST demands and penalties totaling INR 447.5 crore from authorities in five states. In a regulatory filing made late on Monday night, HUL, which owns well-known brands such as Lux, Lifebuoy, Surf Excel, Rin, Pond’s, and Dove, has acknowledged these developments. The company stated that these orders are currently appealable, and it plans to assess the situation and determine its course of action accordingly.
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 INR 372.82 crore and penalty amounting to INR 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 INR 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 INR 12.94 crore has been disallowed and a penalty amounting to INR 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 INR 8.65 crore and imposed a penalty amounting to INR 87.50 lakh.
Impact on Hindustan Unilever:
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’s (Hindustan Unilever Ltd) revenue was at INR 59,144 crore.
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