Hindustan Unilever Ltd, a leading FMCG company, announced on Monday that it has received Goods and Services Tax claims and penalties totaling Rs 447.5 crore from the authorities. HUL, which owns Lux, Lifebuoy, Surf Excel, Rin, Pond's, and Dove, stated in a regulatory filing that these "orders are currently appealable" and that it will make a decision.
On Friday and Saturday last week, the company received five orders from different zones of GST officials on matters such as disallowance of GST credit, salaries including allowances paid to foreigners, and so on.
"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," HUL said in a statement.
This includes a demand for tax "on salaries including allowances paid to expats amounting to Rs 372.82 crore and penalty amounting to Rs 39.90 crore" from the Joint Commissioner of CGST and Central Excise, Mumbai. East Furthermore, the Bengaluru Deputy Commissioner of Commercial Tax Officer filed a tax demand "on the grounds of excess GST credit availed amounting to Rs 8.90 crore and penalty amounting to 89.08 lakh."
The Excise and Taxation Officer in Sonipat, Rohtak, Haryana, has issued a demand notice "in which GST credit of Rs 12.94 crore has been disallowed and a penalty of Rs 1.29 crore has been imposed."
While Additional Commissioner, Central Tax and Central Excise, Kochi Commissionerate has also disallowed GST credit and turnover adjustment of Rs 8.65 crore and issued a Rs 87.50 lakh penalty.
According to HUL, the notification of tax payable would have "no material impact on financial, no impact on operation" or other operations of the company. "These Orders are currently appealable & we will make an assessment to exercise our right to appeal," HUL stated in a statement. HUL (Hindustan Unilever Ltd) revenue for the fiscal year ending March 31, 2023 was Rs 59,144 crore.
