Mumbai, February 4, 2025 – GlaxoSmithKline Pharmaceuticals Limited has disclosed that it received a Goods and Services Tax (GST) demand order amounting to ₹5,80,80,176 from the Additional Commissioner of Central Tax, Delhi North. The demand order, dated January 31, 2025, pertains to the period from July 2017 to March 2022 and primarily arises due to disallowed input tax credit (ITC) claims and mismatches in GST credit reporting between the company's filings and its suppliers' reports.
Key Details of the Order:
| Particulars | Details |
|---|---|
| Issuing Authority | Additional Commissioner, Central Tax, Delhi North |
| Nature of Demand | Tax: ₹2,90,40,088; Penalty: ₹2,90,40,088; Interest: Not quantified |
| Date of Order | January 31, 2025 |
| Date of Receipt | February 3, 2025 |
| Reason for Demand | Disallowed ITC and GST credit mismatches from FY 2017-18 to FY 2021-22 |
| Financial Impact | No immediate impact; company evaluating next steps |
Company’s Response
GlaxoSmithKline Pharmaceuticals has stated that the demand will not impact its financial operations. The company is currently reviewing the order and intends to take appropriate actions in due course.This development follows increased scrutiny by Indian tax authorities over input tax credit compliance. Businesses across sectors have been facing tax demands related to mismatches in ITC claims, prompting concerns over operational and financial implications.
Investors will closely monitor how GSK handles this tax demand and whether it will contest the order. Further disclosures from the company may clarify its legal stance and potential impact on future financials.
For further updates, stay tuned.