Gland Pharma Faces Rs 6.29 Cr GST Demand, Plans to Challenge Tax Order
New Delhi: Gland Pharma Limited has received an order from the GST authority raising a tax demand along with penalty for the financial year 2019-20.
The company disclosed the development to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
According to the disclosure, the order has been issued by the Deputy Commissioner (ST)-V of the GST Department, Telangana. The authority has raised a GST demand of ₹5,03,51,468 along with applicable interest and a penalty of ₹1,25,87,867 under the provisions of the CGST Act, 2017, SGST Act, 2017 and IGST Act, 2017.
The company stated that the order dated March 5, 2026 was received through email. The tax demand has been raised primarily on the contention that tax amounting to ₹4,57,79,447 is payable on export turnover after treating the same as local sales.
Additionally, the GST authority has levied a further tax demand of ₹45,72,022 citing non-specified reasons related to the issuance of certain credit notes pertaining to export turnover.
Overall, the total disputed amount stands at ₹6,29,39,335, which includes the tax demand of ₹5,03,51,468 and penalty of ₹1,25,87,867, along with applicable interest.
The company said that after evaluating the facts and prevailing legal provisions, it believes that the tax demand and penalties imposed by the GST authority are not justified. Consequently, Gland Pharma is in the process of filing the necessary appeal before the appropriate appellate authority.
According to Gland Pharma Limited’s regulatory filing, based on its current evaluation, the order is not expected to have any material impact on the company’s financials, operations or other business activities.
