United Breweries Limited has secured significant relief in a long-standing tax dispute in Bihar. The GST Commissioner (Appeals) has drastically reduced the company’s penalty liability following a favorable review of legal submissions. While the initial demand order issued in February 2025 had confirmed a penalty of ₹29,00,048, the revised order has lowered this amount to ₹1,85,878. The company intends to further appeal the residual demand before the GST Appellate Tribunal.
Update on Tax Litigation Proceedings
United Breweries Limited has successfully challenged a tax demand order issued by the Assistant Commissioner of State Tax, Pataliputra Circle, Bihar. The company received a favorable order from the GST Commissioner (Appeals) on April 24, 2026, which marks a significant development in the company’s ongoing legal efforts to address outstanding tax liabilities.
Significant Reduction in Penalty
The original demand, which was issued under Section 73 of the BGST Act, 2017 on February 27, 2025, had imposed a total tax and penalty liability of ₹29,00,048. Following rigorous legal arguments presented by the company, the appellate authority granted substantial relief, bringing the total penalty amount down to ₹1,85,878.
Future Legal Strategy
Despite the successful reduction of the penalty, United Breweries Limited has decided to continue its pursuit of total exoneration. The company confirmed that it will be filing an appeal before the GST Appellate Tribunal (GSTAT) to contest the remaining residual demand. This move indicates the company’s commitment to resolving the dispute entirely through the appropriate legal channels.
Source: BSE
