United Breweries faces Rs 22.5 crore tax demand from Maharashtra VAT

MUMBAI: United Breweries Limited has received a tax demand totalling Rs 22.5 crore from the Maharashtra State VAT Department, adding a fresh twist to its regulatory disclosures.

The order, issued by the Deputy Commissioner of State Tax, relates to the financial year 2021-22 and stems from the alleged non-submission of declaration forms required for availing concessional tax rates under the Central Sales Tax Act, 1956.

The total demand includes additional tax of Rs 9.65 crore, interest of Rs 10.42 crore and a penalty of Rs 2.41 crore. The order was dated March 30, 2026 and received by the company on April 1.

United Breweries said it is currently evaluating its legal options and is preparing to challenge the demand before the appropriate appellate authority. The company maintains that it has a strong case on merits.

In its disclosure, United Breweries Limited company secretary and compliance officer Nikhil Malpani indicated that the company does not expect any material financial impact, apart from a statutory pre-deposit required to file the appeal.

The development highlights the continued scrutiny around indirect tax compliance, particularly legacy issues linked to documentation under earlier tax regimes. For United Breweries, the immediate focus will be on contesting the demand while keeping any financial exposure in check.