Adani Wilmar Faces Hefty Penalty from Uttar Pradesh GST Department

Adani Wilmar, an edible oils company, has been penalized Rs 42 lakh by the Uttar Pradesh GST department. The penalty relates to tax demand under the UP GST Act, 2017 due to transitional credit claimed in TRAN-1. The company plans to contest the order.

Adani Wilmar, a prominent name in the edible oil industry, is currently under scrutiny as the Uttar Pradesh GST department has imposed a substantial penalty. On Wednesday, the company announced that a levy of Rs 41,99,465 has been placed on it, corresponding to the tax demand.

The penalty, as confirmed in a regulatory filing, was ordered by the Deputy Commissioner of CGST & Central Excise Division, Lucknow-I. It pertains to transitional credit claimed by Adani Wilmar in form TRAN-1 under the Uttar Pradesh GST Act, 2017. The company received notification of this order on February 4.

Adani Wilmar, which markets its products under the Fortune brand, has expressed its intent to challenge the decision. The company has stated that it is currently taking necessary steps to appeal the penalty with the appropriate authorities.

(With inputs from agencies.)