Aarti Pharmalabs has been penalized Rs. 2.60 Lakhs by the CGST and Central Excise Circle -VIII, Vapi. The penalty stems from alleged discrepancies in Input Tax Credit claims and tax liability declarations for the financial years 2022-23 and 2023-24. The company states that this penalty will not have a material impact on its financials or operations.
Details of the Penalty
A penalty of Rs. 2.60 Lakhs has been imposed on Aarti Pharmalabs by the Office of the Assistant Commissioner, CGST & Central Excise, Circle-VIII, Vapi. The penalty is related to section 74 of CGST Act, 2017.
Reason for the Penalty
The Company received an order involving an alleged demand of Rs. 31,15,608/- inclusive of tax, interest, and penalty. The demand pertains to the alleged excess availment of Input Tax Credit and incorrect declaration of tax liability for the financial years 2022-23, 2023-24 based on discrepancies identified in the data submitted under GSTR-3B, GSTR-1, GSTR-9, GSTR-2A, and other records. The order was received on 3rd Feb 2026.
Impact Assessment
According to the company’s assessment, there will be no material impact on its financials, operations, or other activities as a result of this penalty.
Source: BSE
