Pharmaceutical Sector to be Investigated for GST Evasion of Rs 450 Crore

In efforts to clamp down on GST Evasion, DGGI reportedly initiated 41 cases against leading pharmaceutical companies nationwide in FY24.

GST leakages

PRATEEK MAURYA | May 15, 2024 |

Pharmaceutical Sector to be Investigated for GST Evasion of Rs 450 Crore

Pharmaceutical Sector to be Investigated for GST Evasion of Rs 450 Crore

In efforts to clamp down on GST Evasion, the Directorate General of GST Intelligence (DGGI) reportedly initiated 41 cases against leading pharmaceutical companies nationwide in FY24.

Pharma firms avoided GST through methods like brand transfer sales, fake ITC claims on expired drugs, erroneous ITC claims for business support services, and neglecting GST payments under the Reverse Charge Mechanism, sources revealed.

DGGI’s Mumbai zone registered the highest number of cases, totaling 29 out of the 41 cases reported, as per sources.

Glenmark Pharmaceuticals settled the highest amount of GST dues among the listed companies, with two separate payments of around Rs 130 crore and Rs 40 crore

Vicco Laboratories followed suit, resolving two cases with payments of approximately Rs 95 crore and Rs 20 crore, respectively.
Also Zydus Healthcare and Zydus Lifesciences collectively paid around Rs 45 crore, ranking third on the list of settlements.

Among the companies included in the 41 cases registered, notable names are Sun Pharma Laboratories Ltd and Sun Pharma Ltd.

Additionally, Biocon Ltd and Pfizer Ltd are also part of the list facing scrutiny.

Other companies involved in the cases include Biocon Biologics, Wockhardt Ltd, Torrent Pharmaceuticals Ltd, Aurobindo Pharma Ltd, and Cipla Ltd, Hetero Healthcare, Mylan Pharmaceuticals, Alembic Pharmaceuticals, and Lupin Ltd, among others.

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"