HUL shares fell after GST department gave notice of Rs 447 crore

Hindustan Unilever Limited (HUL shares), one of the country’s leading FMCG companies, suffered a major setback at the beginning of the year 2024. The company informed that it has received a notice of Rs 447.50 crore from the Goods and Services Tax Department. This notice issued by the GST Department includes both demand and penalty. After this news, a fall of 1.25 percent was seen in HUL shares on Tuesday.

According to the information given to the stock exchange, the company can further appeal the notice received. In such a situation, it will be assessed first and after that, the company will make further decisions. HUL is one of the largest consumer goods (FMCG) companies in the country and is the parent company of popular brands like Lux, Lifebuoy, Rin, Pond’s, Dubb, and Surf Excel.

Why did the company get the notice?
HUL has received a total of five notices from different GST zones of the country on the issue of GST credit, salary, allowance, etc. All these notices were received on Saturday and Sunday i.e. 30th and 31st December. The company made the information about this notice public on the first working day i.e. January 1, 2024. Of the Rs 447 crore notices issued by GST, the largest amount is from the Mumbai East branch. This zone has demanded salary tax on an amount of Rs 372.82 crore along with a penalty of Rs 39.90 crore.

Apart from this, a fine of Rs 89.08 lakh has been demanded on the company in Bengaluru an additional GST credit amount of Rs 8.90 crore. At the same time, GST Excise and Taxation Officers like Sonipat, and Rohtak of Haryana have rejected the GST credit amount of Rs 12.94 crore and imposed a fine of Rs 1.29 crore on it. Also, read this.