Alkem Laboratories has received a GST demand order for ₹35,11,52,690 along with a penalty of ₹3,51,15,268. The order pertains to the period from July 2017 to March 2022. The company is in the process of appealing the order and believes it has adequate grounds to contest the demand. There is no expected cash outflow due to available input tax credits.
GST Demand Order
Alkem Laboratories has received an order confirming a Goods and Services Tax (GST) demand. This order, received on September 20, 2025, pertains to Maharashtra GSTIN for the period covering July 2017 to March 2022.
Financial Implications
The order confirms a GST demand of ₹35,11,52,690. Additionally, a penalty of ₹3,51,15,268 has been levied. This falls under the provisions of the IGST Act, CGST Act, and SGST Act of 2017.
Company’s Response
Alkem Laboratories is currently taking appropriate actions, including filing an appeal against the order. The company believes that the demand is not justified and intends to contest it legally. The key issue relates to an alleged denial of Input Tax Credit due to a discrepancy between GSTR-3B and GSTR-2A forms.
Impact Assessment
The company anticipates no material impact on its financial or operational activities. They believe the dispute is not tenable and have sufficient grounds to support their position under the law. There is also no expected cash outflow because the company has sufficient input tax credit available.
Source: BSE
