United Breweries Limited has received an order from the Deputy Commissioner of State Tax, Maharashtra, regarding a ₹22.50 crore demand for the 2021-22 financial year. The issue pertains to the non-submission of declaration forms for concessional tax rates. The company maintains that it has a strong case for defense and does not anticipate any significant financial impact beyond a minor statutory pre-deposit required for the appeal process.
Dispute Overview
On April 1, 2026, United Breweries Limited received an order dated March 30, 2026, from the Maharashtra State VAT Department. The dispute centers on the non-submission of C & F declaration forms, which are necessary to claim concessional rates of tax under the Central Sales Tax Act, 1956 for the financial year 2021-22.
Financial Breakdown
The total demand issued by the authorities amounts to ₹22,50,12,884. This figure is comprised of the following components:
- Additional Tax: ₹9,65,72,053
- Interest: ₹10,42,97,818
- Penalty: ₹2,41,43,013
Company Stance and Next Steps
United Breweries Limited has confirmed that it is currently evaluating the appropriate course of action to contest this demand. The company is confident in its legal position and intends to defend the matter before the relevant appellate authority. Furthermore, the company stated that it does not expect any material financial impact on its operations, noting that only a minimal statutory pre-deposit will be required to formally file an appeal.
Source: BSE
