GST at 18% for United Spirits' right to use its trademarks; ₹31.5 Crore demand upheld

Joint Commissioner of Commercial Taxes (Appeal-1) has upheld the demand for Goods and Service Tax at the rate of 18% on income received by  United Spirits Limited for granting the right to use its trademarks, as opposed to the 12% rate that was previously applied by the United Spirits. The order includes a Tax of ₹31.5 Crores; a penalty of ₹3.2 Crores and applicable interest. This matter pert…