Non-bank lender Piramal Enterprises Ltd (PEL) on Friday (February 28) said it has received a ₹1,502-crore demand notice from the GST Department, Maharashtra, for FY2020-21.
“…we hereby inform that the Company has received an Order dated 27th February 2025, under Section 73(9) of the CGST/ SGST Act, 2017 of tax ascertained as short paid or not paid together with interest and penalty amounting to Rs 1,502 crore, from the office of Deputy Commissioner of State Tax, Maharashtra,” Piramal Enterprises said in a regulatory filing.
The order, issued on February 27, 2025, by the Deputy Commissioner of State Tax, Maharashtra, cites alleged short payment or non-payment of tax, along with interest and penalties, under Section 73(9) of the CGST/SGST Act, 2017.
The dispute centres on Piramal Enterprises’ ₹4,487 crore slump sale of its pharma business to Piramal Pharma Limited (PPL) in FY21, which included the transfer of subsidiary companies.
The GST Department contended that the transaction was not a slump sale but an itemised sale, making it liable for 18% GST on the entire sale consideration, including proceeds from the sale of investments — an area typically outside the scope of GST.
Piramal Enterprises has strongly contested the order, stating that it has “more than adequate grounds” to support its position and believes the demand is “unjustified.” The company maintained that the GST, interest, and penalties imposed are not applicable to the transaction and plans to take appropriate legal steps to challenge the ruling.
“The company is advised and believes that it has more than adequate grounds to support its position in the matter and that the demand of tax, interest and penalty under GST Law in respect of the transaction and various other items specified in the Annexure is unjustified,” it said.
Piramal Enterprises has clarified that the order will have no impact on its financial statements. “The company will take appropriate steps in its best interest and reasonably expects to have a favourable outcome of getting the Order set aside. The company is advised that the order will have no impact on the statement of profit and loss for the year,” Piramal Enterprises added.
