GST Demand Confirmed by Appellate Authority for Sula Vineyards; Company plans GSTAT Appeal
Sula Vineyards Limited has faced confirmation of a significant GST demand from the Commissioner (Appeals), CGST & Central Excise, Nashik, following an appellate review of an earlier tax order. The authority rejected the company's appeal against the Order-in-Original, thus upholding the original GST demand related to alleged violations committed between FY 2017-18 and FY 2021-22.The Appellate Authority issued the order on May 29, 2026. The confirmed levy involves allegations regarding the imposition of additional tax liability. Specifically, the upheld order relates to the allegation that the rate of GST on restaurant services should be 18% instead of the 5% tax paid, as well as an additional GST liability imposed on a corporate guarantee issued by Sula Vineyards Limited.
The financial implications arising from this confirmed demand are detailed below:
| Particulars | Amount (in Rs.) |
|---|---|
| Tax Liability | 4,01,79,882 |
| Penalty Imposed | 4,09,90,408 |
| Total Financial Impact | 8,11,70,290 |
The company has stated that it does not agree with the confirmed levy and intends to file an appeal before the GST Appellate Tribunal (GSTAT), expecting a favorable outcome at the higher forum.
This matter relates to alleged violations originally committed during the period of FY 2017-18 to FY 2021-22, as confirmed by the Order-in-Original dated December 23, 2024.
SULA Stock Price Movement
On Tuesday, shares of Sula Vineyards Limited edged higher in the market, settling at ₹157.52 after gaining 0.67% on a trading volume of 230,788 shares. The stock traded within a defined range for the day, dipping as low as ₹155.55 and peaking at ₹158.49.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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