Sula Vineyards Limited — Important, 28-12-2024: General Updates

The company has received an order under Section 74(9) of the Central Goods and Services Tax Act, confirming a demand for GST totaling approximately Rs. 4.02 crore. The order alleges that the GST rate on restaurant services should be 18% rather than the 5% rate the company applied. Sula Vineyards does not agree with this order and plans to file an appeal, expecting a favorable outcome at a higher judicial level. This situation may pose financial implications for the company, but management's confidence in appealing could mitigate the impact on operations in the long term. Investors should watch closely as developments unfold.