United Breweries Receives ₹18.60 Crore GST Demand Over Beer Sales
United Breweries faces ₹18.60 crore GST demand from Kerala over beer sales; the company to challenge the order through legal recourse
United Breweries Limited (UBL), one of India’s leading beer manufacturers, has reported receiving a tax demand of Rs 18.60 crore from the Kerala State GST Department. The demand relates to the alleged non-payment of turnover tax on the sale of beer for the financial years 2022-23 and 2023-24.
As per the company’s disclosure dated June 10, 2025, the Deputy Commissioner of State Tax, Palakkad, issued the demand under Section 17(3) of the Kerala General Sales Tax Act, 1963. The notice also includes applicable interest, which could increase the total amount payable.
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The company stated that it has already made adequate provisions for this liability in its financial statements and, therefore, does not anticipate any material financial impact from the demand. It further informed that it is currently exploring legal remedies to challenge the order and intends to pursue appropriate recourse.
The notice arises from the Kerala GST Department’s findings that UBL may have underpaid turnover tax applicable on the sale of beer, a product subject to special tax treatment under state laws.
United Breweries has not detailed the grounds of the dispute in public, but its statement suggests that the company believes the demand lacks merit and is confident in its legal position.
The matter has not yet reached any appellate or judicial forum, and further developments will depend on the outcome of UBL’s challenge to the order.
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About United Breweries
United Breweries, headquartered in Bengaluru, is a major player in the Indian alcoholic beverages industry, with a market share of over 50% in the beer segment. Known for its flagship Kingfisher brand, the company has a nationwide presence with manufacturing units across several states and a strong distribution network. It is majority-owned by the Dutch brewing giant Heineken.
On June 12, 2025, United Breweries Limited closed slightly higher at Rs. 2,065.30, up Rs. 2.20 or 0.11% from the previous close. The stock traded between Rs. 2,054.40 and Rs. 2,080.90, with a VWAP of Rs. 2,061.29, showing limited market reaction to the Rs. 18.60 crore GST demand disclosed by the company.
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