Hindustan Unilever, a major FMCG, hit with Rs 447 crore

Hindustan Unilever Ltd, a prominent FMCG manufacturer recognized for brands like Lux, Lifebuoy, Surf Excel, Rin, Ponds, and Dove, has encountered GST demands and penalties totaling Rs 447.5 crore from authorities across five states. This substantial development was disclosed in a regulatory filing by HUL late on Monday night.

The company confirmed the reception of five orders from various GST zones, specifically addressing issues related to GST credit disallowance, expat salaries, and other factors. These orders were issued on December 30 and 31, 2023, with HUL promptly reporting the development on January 1, 2024, the first working day following their receipt.

Among the significant demands outlined, the Joint Commissioner, CGST and Central Excise, Mumbai East, demanded Rs 372.82 crore for salaries and allowances to expats, along with a penalty of Rs 39.90 crore. Other demands included tax on excess GST credit availed, amounting to Rs 8.90 crore, and penalties from various tax officers in Bengaluru, Haryana, and Kochi Commissionerate, totaling several crores.

HUL reassured stakeholders that these demands and penalties would hold no material impact on their financial or operational aspects. The company emphasized their intention to assess and potentially appeal against these orders, highlighting their commitment to exercising their right to appeal.

For the fiscal year ending on March 31, 2023, HUL reported a revenue of Rs 59,144 crore.