Glenmark Pharmaceuticals Receives ₹121.25 Crore GST Demand Order

Glenmark Pharmaceuticals Ltd has received a tax demand order from the Joint Commissioner of Central Goods and Services Tax and Central Excise (CGST & CX), Palghar, Maharashtra, amounting to ₹121.25 crore.

The order, covering the period from 2017-18 to 2021-22, includes tax dues, interest, and penalties, the company disclosed in a regulatory filing on Friday.

Breakdown of the Demand

The demand order includes a tax liability of ₹57.70 crore related to excess Integrated Goods and Services Tax (IGST) refunds. The tax authority has claimed that Glenmark incorrectly availed IGST refunds based on the cost, insurance, and freight (CIF) value instead of the free-on-board (FOB) value.

Additionally, an amount of ₹5.86 crore, which the company had previously paid for surrendering IGST refunds related to the non-realization of export proceeds, has been appropriated by the tax department.

A penalty of ₹63.56 crore, equal to the tax demand, has also been imposed on Glenmark Pharmaceuticals.

Company’s Response

Glenmark Pharmaceuticals has stated that it intends to challenge the order before the appropriate Appellate Authority. The company assured stakeholders that the tax demand will not have a material impact on its financial performance or business operations.

“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,” the regulatory filing noted.

Order Uploaded on GST Portal

The GST order, dated February 4, 2025, has been uploaded on the GST portal. The company is expected to initiate its appeal process soon to contest the demand and penalties levied by the tax authorities.

Stock Performance 

On February 07, 2025, Glenmark Pharmaceuticals share price ended 2.980% higher at ₹1,540.20. Glenmark Pharmaceuticals share price reached a 52-week high of ₹1,830.05 on October 15, 2024, and a 52-week low of ₹766.65 on February 15, 2024. As per BSE, the total traded volume for the stock stood at 0.16 lakh shares with a turnover of ₹2.44 crore.

At the current price, Glenmark Pharmaceuticals shares are trading at a price-to-earnings (P/E) ratio of 7.70x, based on its trailing 12-month earnings per share (EPS) of ₹199.94, and a price-to-book (P/B) ratio of 1.82, according to exchange data.

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