United Breweries Limited announced receiving an order from the Commissioner of CGST & Central Excise concerning a new tax dispute. The demand, dated February 26, 2026, totals ₹31.88 crore, covering GST and an equivalent penalty related to leasehold assignment and Non-Alcoholic Beverage (NAB) classification. The company proactively deposited ₹11.12 crore under protest and maintains strong grounds to defend its position, planning immediate appellate remedies.
Key Disclosure on Tax Matter
United Breweries Limited has formally disclosed receipt of an Order from the Commissioner of CGST & Central Excise, located in Raigad-Navi Mumbai, Maharashtra. This disclosure concerns a significant new litigation matter arising from a demand issued by the GST authorities.
Details of the GST Demand Order
The Company received a GST Demand Order dated February 26, 2026, which was officially received on March 12, 2026. The total demand amounts to ₹31,88,31,224/-. This figure comprises GST liability of ₹15,94,15,612/- along with an equivalent penalty.
The dispute centers on two specific areas:
- The taxability concerning the assignment of leasehold land situated in Navi Mumbai.
- A classification dispute pertaining to Non-Alcoholic Beverage (NAB) products.
Financial Implications and Company Stance
Given the regulatory ambiguity surrounding the year leasehold rights were sold, the Company had already made a proactive deposit prior to the initiation of proceedings. This deposit amounted to ₹11,12,64,330/-, made under protest.
The total quantum of the claim is therefore enumerated in the demand figures above. Management currently holds the considered view that the Company possesses strong merits to defend its position against this assessment and is actively evaluating all appropriate judicial and appellate remedies available for challenge.
Source: BSE
