Diageo India, formerly known as United Spirits, disclosed on Wednesday that it has received a tax demand amounting to Rs 4.47 crore from the Maharashtra state tax authorities. The demand, issued through an assessment order dated March 5, 2024, pertains to the fiscal year 2018-19 and relates to Central Sales Tax (CST) and Maharashtra Value Added Tax (MVAT), as stated in a regulatory filing.
The Maharashtra state tax authorities have specified Rs 1.21 crore as MVAT, which includes a penalty of Rs 1 lakh, and Rs 3.26 crore as CST. The demand has been imposed by the Deputy Commissioner, State Tax, citing non-submission of statutory declaration forms and disallowance of a portion of input tax credit.
Diageo India intends to challenge the demand by either filing a rectification application or appealing to higher authorities. The company expressed confidence in its position, citing its risk-assessment process, and anticipates no significant financial impact from the issue.
