Drug firm Glenmark Pharmaceuticals Ltd on Friday (February 7) said it has received an order from the Joint Commissioner of Central Goods and Services Tax and Central Excise (CGST & CX) Palghar, Maharashtra, seeking ₹121.25 crore in tax, interest, and penalties from 2017-18 to 2021-22.
The order includes a demand of ₹57.70 crore for excess Integrated Goods and Services Tax (IGST) refunds claimed on the cost, insurance, and freight (CIF) value instead of the free-on-board (FOB) value.
“This is to inform you that the Company has received an order from the joint Commissioner of CGST & 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,” Glenmark Pharmaceuticals said in a regulatory filing.
Additionally, ₹5.86 crore already paid by the company for surrendering IGST refunds related to non-realisation of export proceeds has been appropriated. A penalty of ₹63.56 crore, equivalent to the tax demand, has also been imposed.
The company stated that it intends to appeal against the order and emphasised that there is no material impact on its financials or operations. The order, dated February 4, 2025, was uploaded on the GST portal.
“The company intends to file an appeal before the appropriate Appellate Authority. There is no material impact on the company’s financials or operations due to the said order,” it added.
