Bira maker faces tax claims, struggles with vendor dues

B9 Beverages hit with ₹26 crore Maharashtra value-added tax notice amid mounting losses

- Varuni Khosla

B9 Beverages has received tax notices of over ₹26 crore from the Maharashtra government at a time when the maker of the popular Bira beer brand is struggling to make payments to vendors and employees amid mounting losses and falling revenues.

The Maharashtra value-added tax (MVAT) department has issued a notice to all distributors of the beer brand in the state, directing them to pay any outstanding dues owed to B9 Beverages directly to the tax authorities instead, according to a circular issued in January that Mint has accessed through a distributor.

The company owes ₹26.38 crore in unpaid VAT to Maharashtra, and also needs to pay ₹7 crore to Madhya Pradesh, ₹4.8 crore to Delhi, and ₹4.7 lakh to Himachal Pradesh in similar taxes, according to its FY24 balance sheet that it filed late last week with the registrar of companies at the ministry of corporate affairs. It also had a VAT liability in Maharashtra of ₹30 crore, according to its balance sheet.

Distributors who received the notice have also been warned that if they continue making payments to B9 Beverages after receiving this notice, they could be held personally liable for the unpaid tax amount.