Hindustan Unilever Ltd. (HUL) on Thursday clarified that it was awaiting advice from the government on how to return an excess collection of ₹119 crore made on account of Goods & Services Tax (GST).
“We are awaiting advice so that we can deposit the cheques at the earliest,” HUL said in a statement, denying reports that it had been fined ₹119 crore.
HUL said that it had already disclosed the excess collection during the announcement of its quarterly financial results on January 17, 2018.
HUL said it had proactively disclosed the amount to the CBEC and had voluntarily offered to pay suo motu by transferring the money to the Consumer Welfare Funds.
“However in the absence of clear legal provisions on this subject, they (CBEC) had forwarded our request to DG Safeguards. “We have not recognised this amount as a revenue and holding it as a liability in our books,” HUL said.
From November 15, GST rates were reduced on some items from 28% to 18% and though it came into effect immediately, it was not possible for the company to pass on the entire benefit on some pipeline stocks during the transition. And as a result the excess amount of ₹119 crore was collected, it said.