Alkem Laboratories has received a Goods and Services Tax (GST) order demanding ₹2,34,61,952 along with applicable interest and penalty of the same amount. The order pertains to the period 2019-2020 to 2022-2023. Alkem disagrees with the order, which alleges excess availment of Input Tax Credit, and intends to contest it, including potentially filing an appeal. The company does not expect a material impact on its operations.
GST Order Details
Alkem Laboratories has been served a GST order concerning its Goa operations. The order demands payment of ₹2,34,61,952. In addition, a penalty of ₹2,34,61,952 has been levied, relating to the period between 2019-2020 and 2022-2023.
Basis of the Order
The GST order primarily alleges that Alkem Laboratories has availed excess Input Tax Credit. The assessment was conducted by the Additional Commissioner, Central Goods & Services Tax, Goa.
Company’s Response
Alkem Laboratories does not concur with the findings in the order and plans to challenge it. The company is in the process of taking appropriate actions, which include the possibility of filing an appeal.
Impact Assessment
Alkem Laboratories stated that the GST order is not expected to have a material impact on its financial condition, operation, or other activities.
Source: BSE
