Glenmark Pharmaceuticals slapped with GST Demand worth Rs.121.25 Crore

Glenmark Pharmaceuticals Ltd stated on Friday (February 7) that it has received an order from the Joint Commissioner of Central Goods and Services Tax and Central Excise (CGST and CX) in Palghar, Maharashtra, seeking Rs.121.25 crore in tax, interest, and penalties from 2017-18 to 2021-22.

The order included a demand of Rs.57.70 crore for excess Integrated Goods and Services Tax (IGST) refunds claimed on the cost, insurance and freight (CIF) value rather than the free-on-board (FOB) value.

“This is to inform you that the Company has received an order from the joint Commissioner of CGST and CX Palghar, Maharashtra, passed under relevant provisions of the Central Goods and Services Tax Act, 2017 for the period 2017-18 to 2021-22 demanding GST along with interest and penalty,” Pharmaceuticals company stated in the regulatory filing.

The company has already paid Rs.5.86 crore for surrendering IGST refunds due to non-realisation of export revenues. A penalty of Rs.63.56 crore, equal to the tax demand, was also levied.

The company stated that it intends to file an appeal against the order with the competent Appellate Authority and that there will be no major impact on its finances or operations. The order, dated February 4, 2025, was uploaded to the GST portal.

Glenmark Pharmaceuticals Ltd’s shares closed at Rs.1,540.15 on 09th Feb on the BSE.