Gland Pharma Limited has disclosed the receipt of an order from the GST Authority imposing a tax demand, interest, and penalty for the Financial Year 2019-20. The total disputed amount aggregates to INR 6,29,39,335. The company disputes the demand, which stems from contentions related to the levy of tax on export turnover treated as local sales. Gland Pharma is preparing to file an appeal, stating that the order will have no material impact on its financials or operations.
Disclosure of Tax Authority Order
Gland Pharma Limited officially communicated the receipt of an order from the GST Authority concerning the Financial Year 2019-20. This order mandates a tax demand along with applicable interest and penalties. The company is actively engaged in filing the necessary appeal against this decision to the appellate authority.
Details of the Disputed Amount
The total financial liability outlined in the order has been broken down as follows:
- Tax Demand: INR 5,03,51,468/-
- Interest and Penalty: INR 1,25,87,867/-
The total disputed amount currently stands at INR 6,29,39,335/-, plus applicable interest charges.
Grounds for Tax Contention
The GST Authority passed the order based primarily on two contentions:
- Levy of Tax on Export Turnover: A levy of tax amounting to INR 4,57,79,447/- on Export Turnover, which the authority treated as local sales.
- Levy Due to Credit Notes: A levy of tax totaling INR 45,72,022/- attributed to non-specified reasons concerning credit notes issued against export turnover.
The order was officially received by the Company via Email on March 05, 2026, and was issued by the Deputy Commissioner (ST)-V, GST Department, Telangana.
Company Assessment and Impact
Following an internal assessment of the facts and prevailing legal framework, the management of Gland Pharma firmly believes that the levied tax demand and associated penalties are not justified. Consequently, the Company plans to pursue all necessary legal remedies by appealing the order. Management has concluded that, based on their current evaluation, the order will result in no material impact on the financials, operations, or other activities of Gland Pharma Limited.
Source: BSE
