HUL receives GST demand, penalties of ₹447.5 crore from authorities of five States

Leading FMCG maker Hindustan Unilever Limited has received GST demand and penalties totalling ₹447.5 crore from authorities of five States.

Leading FMCG maker Hindustan Unilever Limited has received GST demand and penalties totalling ₹447.5 crore from authorities of five States.

These "orders are currently appealable" and the company will make an assessment for that, according to a late night (on January 1) regulatory filing from HUL, which owns brands such as — Lux, Lifebuoy, Surf Excel, Rin, Pond's and Dove.

The company received a total of five orders passed from several 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 ₹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 demand 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 demand 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 also disallowed GST credit and turnover adjustment amounting to ₹8.65 crore and imposed a penalty amounting to ₹87.50 lakh.