United Breweries receives tax demand of 186 million rupees

Unknown Apr 02, 2026 1,150 Views

United Breweries Ltd (UBL), a leading player in India’s beverage industry, has received a tax demand order amounting to 186 million rupees from the Maharashtra State Goods & Services Tax Department. The demand is linked to tax liabilities for the financial year 2019-20, raising concerns...

Key highlights of the tax demand

- The tax order was issued by the Deputy Commissioner of State Tax, Raigad Division, Maharashtra
- The demand includes additional tax levies, interest charges, and penalties
- The company has stated that it has a strong case to challenge the order before the appellate authority
- UBL does not anticipate any significant financial impact apart from a minimal statutory pre-deposit required for the appeal process

Breakdown of the tax demand

The tax demand primarily stems from the levy of 60 percent Central Sales Tax (CST) on debit notes raised by UBL for reimbursement of state excise duties paid on behalf of various state beverage corporations. Additionally, the demand includes charges related to the non-submission of declaration forms required for concessional tax rates.

Company’s response and next steps

UBL has expressed confidence in its ability to contest the tax demand, citing similar past cases where it successfully defended its position. The company has assured stakeholders that it will follow due legal procedures to resolve the matter without significant financial repercussions.

Industry implications

The tax demand highlights ongoing regulatory scrutiny in the beverage industry, particularly concerning tax compliance and financial reporting. It also underscores the complexities of taxation in India’s liquor sector, where companies often face challenges related to state and central tax regulations.

United Breweries remains committed to addressing the issue through legal channels while continuing its operations without disruption.

Sources: NDTV, Economic Times, Live Mint

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