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CompaniesVaruni Khosla
5 min
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18 Feb 2025, 10:05 PM
ISTB9 Beverages which will IPO in 2026 is facing tax trouble with authorities ahead of that (Mint)Summary
The Maharashtra value added tax department has issued a notice to all distributors of the beer brand, 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.
B9 Beverages has received tax notices for more than ₹26 crore from the Maharashtra government at a time when the maker of the popular Bira beer brand is struggling to make payments to its vendors and employees amid mounting losses and shrinking 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.
Also read | Bira subsidiary to add pubs, brewery outlets; targets ₹200 cr revenue by FY26
“We received these notices out of the blue in January and are being questioned by authorities repeatedly for the unpaid dues by them. We can’t understand why the company has not cleared VAT dues yet,” a distributor told Mint on the condition of anonymity.
When contacted, Ankur Jain, the founder of the Delhi-based company, acknowledged the arrears. “There are arrears in taxes payable by the company across some departments. The company is fully engaged with the relevant departments and expects to discharge all liabilities in the current fiscal year, including MVAT and others,” he said.
The reason for the delay in clearing VAT liabilities to Maharashtra, Madhya Pradesh, Himachal Pradesh and Delhi has been significant disruptions to the company’s business in the second half of FY24 and the first half of FY25 due to a change in the name of the company “which required us to re-register all our brand and labels and pause sales, and drastic changes in the route to market or stock issues in states like Delhi and Andhra Pradesh,” Jain said in response to Mint’s detailed questionnaire.
B9 also owes payments to vendors. A Del