Mumbai, February 28, 2025 – GlaxoSmithKline Pharmaceuticals Limited (NSE: GLAXO; BSE: 500660) announced today it has received tax demand orders totaling ₹76,63,817 from Punjab and Rajasthan tax authorities related to GST credit issues for FY 2020-21.
The Punjab State GST authorities issued a demand order of ₹53,67,166, comprising ₹28,29,239 in tax, ₹22,44,945 as interest, and ₹2,92,982 as a penalty. Concurrently, the Rajasthan Commercial Tax Department raised a separate demand of ₹22,96,651, which includes ₹12,70,269 in tax, ₹8,82,645 as interest, and ₹1,43,737 as a penalty.
These orders, dated February 27, 2025, primarily stem from discrepancies between the company's GST returns and the details reported by its suppliers, resulting in disallowed input tax credit claims.
Impact and Response:
GSK Pharmaceuticals stated there would be no immediate financial or operational impact from these demands. The company is currently reviewing the orders and is preparing its response.
Ajay Nadkarni, Vice President – Administration, Real Estate & Company Secretary, remarked, "The company is evaluating the demand orders and will take appropriate actions in due course."
Investors and analysts are closely monitoring GSK Pharma's strategic handling of these notices, given the heightened regulatory scrutiny surrounding GST compliance.