Sula Vineyards Discloses That Its Appeal Against Rs 8.11 Crore GST Demand Is Rejected

Sula Vineyards Discloses That Its Appeal Against Rs 8.11 Crore GST Demand Is Rejected

Sula Vineyards Limited has informed the National Stock Exchange of India Limited and BSE Limited through a disclosure dated 16 June 2026 under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that it has received an Order-in-Appeal dated 29 May 2026 passed by the Commissioner (Appeals), CGST & Central Excise, Nashik. The order has rejected the company’s appeal and upheld the Order dated 23 December 2024 issued under Section 74(9) of the Central Goods and Services Tax Act, 2017.

The Additional Commissioner, CGST and Central Excise, Nashik, under Section 74(1) of the CGST Act, issued a Show Cause Notice dated 18 July 2024. The proceedings were related to FY 2017-18 to FY 2021-22 and alleged that the company had paid GST at 5% on restaurant services instead of 18%, which has amounted to an additional tax liability of 13%. The authorities also alleged non-payment of GST on corporate guarantees of the company.

Consequently, the Additional Commissioner passed an Order on 23 December 2024 confirming the GST demand. Aggrieved by the order, Sula Vineyards preferred an appeal before the Commissioner (Appeals), CGST & Central Excise, Nashik.

In the appellate proceedings, the Commissioner (Appeals) upheld the findings recorded in the Order and confirmed the alleged violations. According to the company, the penalty of Rs. 40,990,408 has also been imposed. The total financial impact arising from the order amounts to Rs 81,170,290.

The company clarified that it has a strong case on merits. Accordingly, Sula Vineyards has decided to challenge the appellate order before the Goods and Services Tax Appellate Tribunal (GSTAT).