Mumbai, February 3, 2025 – Lupin Limited (NSE: LUPIN, BSE: 500257) has disclosed that it has received separate penalty orders from the Maharashtra and Delhi GST authorities. The penalties, which relate to alleged wrongful Input Tax Credit (ITC) claims, amount to a total of approximately ₹48.24 crore. However, the company asserts that these demands are arbitrary and will be contested through appeals.
Key Developments and Financial Implications
| Authority | Penalty Amount | Alleged Violation | Company Response |
|---|---|---|---|
| Maharashtra GST Authority | ₹3,55,08,758/- | Wrongful availment of ITC for FY 2017-18 and 2021-22 | Will file an appeal, views demand as arbitrary |
| Delhi GST Authority | ₹1,27,36,665/- | Wrongful availment of ITC for FY 2017-18 | Will file an appeal, views demand as arbitrary |
Regulatory Background
Lupin’s disclosure follows Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates companies to disclose material litigation and regulatory actions. The penalties imposed fall under the CGST Act, 2017, SGST Act, 2017, and IGST Act, 2017.Company's Position
Despite the penalties, Lupin maintains that these actions will not materially impact its financials or business operations. The company states that it has reviewed the orders and considers them unjustified. Lupin intends to challenge the penalties through appellate proceedings.Market and Investor Impact
Lupin’s stock performance could see temporary fluctuations in response to regulatory developments. However, given the company's firm stance on appealing the orders and its assurance of no material financial impact, investors may not see significant long-term consequences.For further updates, stay tuned.