United Breweries gets Rs 263 crore tax demand order

The United Breweries stock has slipped almost 5 percent in the last three months.

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26 Aug, 2025 12:21

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United Breweries Limited revealed on Friday, April 5, that it has been issued a tax demand of Rs 263.72 crore by the Maharashtra State Goods & Service Tax (GST) Department.

According to a regulatory disclosure, the GST department issued an order under Section 9(2) of the Central Sales Tax Act, 1956, imposing an additional tax of Rs 119.8 crore along with interest of Rs 115 crore and a penalty of Rs 28.8 crore summing up to Rs 263.7 crore the financial year 2020.

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The demand order stems from a 60 percent central sales tax (CST) imposed on debit notes issued by UBL to Telangana State Beverage Corporation (TSBCL), Karnataka State Beverage Corporation (KSBCL), and Andhra Pradesh State Beverage Corporation (APBCL). These debit notes were raised to reimburse state excise duties paid by UBL on behalf of the State Beverage Corporations during the fiscal year 2020, as stated by the liquor manufacturer.

The company is of the view that "It has a strong case to defend the issue before the relevant appellate authority and does not expect any financial impact on the company except for a minimal statutory pre-deposit that is required to be made at the time of admission of appeal."

This isn't the first time the company has received such an order. In a prior incident, the company faced a demand of Rs 275 crore was issued against the company. However, the company managed to secure a favorable outcome, resulting in a substantially reduced demand order of Rs 7 crore.

On April 5, the stock closed at Rs 1,806, higher by 1.5 percent from the previous close on the NSE. The United Breweries stock has slipped almost 5 percent in the last three months.

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