United Spirits Says Its Profit Margins to be Impacted Under New GST Scheme

In an investor presentation, Diagio-controlled liquor major United Spirits, has stated that its margins, on account of additional tax on input materials and services, will be affected under the new GST regime, reported a leading business daily on Wednesday.
 
While the central government has put alcohol for human consumption out of the GST ambit, the state governments will continue to levy certain taxes.
 
"Our initial assessment on GST suggests that, while alcohol for human consumption has been excluded from GST, the additional tax on input materials and services will result in stranded taxes, and impact margins," said United Spirits.

 The liquor major also added that it will approach state governments for appropriate price increases and continue working with the central government to lessen this impact.