Mumbai, January 29, 2025 – Ipca Laboratories Limited (NSE: IPCALAB) has disclosed two tax demands under the Central Goods and Services Tax (CGST) Act, 2017, totaling ₹56.7 lakh, citing alleged violations of tax provisions. The company, however, stated that these demands will not have a material impact on its financials and operations and intends to challenge the orders.
Key CGST Tax Orders
Order 1: Thane Commissionerate (FY 2017-18 to 2019-20)
- Authority: Assistant Commissioner, CGST, Thane
- Tax Demand: ₹50.01 lakh
- Penalty: ₹50.01 lakh under Section 122(2)(b) of CGST Act
- Alleged Violation: Reverse charge liability on foreign bank charges deducted by Indian banks.
- Company’s Response: Ipca Laboratories believes the tax demand is not maintainable in law and will appeal against the order.
Order 2: Punjab Commissionerate (FY 2017-18)
- Authority: Superintendent, CGST, Punjab
- Tax Demand: ₹6.69 lakh
- Penalty: ₹6.69 lakh under Section 122(2) of CGST Act
- Alleged Violation: Wrongly availed transitional credit under Section 140 of CGST Act.
- Company’s Response: Ipca Laboratories has sought legal advice and will file an appeal within the prescribed timeline.
Financial & Operational Impact
- No Material Impact: The company clarified that the tax orders will not affect its financial position, operations, or business continuity.
- Legal Assessment: Ipca Laboratories maintains that both tax demands lack legal validity and intends to contest them vigorously.
Next Steps
- Filing of Appeals: The company will pursue legal recourse to challenge both tax orders.
- Regulatory Compliance: Disclosures made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.