Shares of Hindustan Unilever were trading in the red and 1% lower on 2 January after the company was slapped with a Rs 447.5 crore GST demand.

The company had received a total of five orders that were passed by Goods and Services Tax (GST) officials from different zones that were addressing issues such as salaries that include allowances paid to expatriates and the disallowance of GST credit.

The charges include the demand for tax on salaries, including allowances paid to expatriates for a total amount of Rs 372.82 crore and a penalty of Rs 39.90 crore. The joint commissioner of CGST and Central Excise, Mumbai East, and the deputy commissioner and commercial tax officer of Bengaluru issued a demand of tax towards the company on the grounds of excess GST availed of amounting to Rs 8.9 crore.

Furthermore, a demand order disallowing GST credit of Rs 12.94 crore and imposing a penalty of Rs 1.29 crore was issued by the excise and taxation officer in Sonipat. The commissioner of central tax and central excise in the Kochi Commissionerate disallowed GST credit and turnover adjustment of Rs 8.65 crore, along with a penalty of Rs 87.50 lakh.

In its regulatory filing, the company said that these demands won’t have any material impact on the financial, operation or any other activities of the company due to the intimation of tax payable.

The company added, “These orders are currently appealable and we will make an assessment to exercise our right to appeal.”

At 11:27 am, the shares of Hindustan Unilever were trading 1.29% lower at Rs 2,620.40 on NSE.