Company Plans to Appeal Against the Order
Mumbai, February 5, 2025 – Pfizer Limited (NSE: PFIZER, BSE: 500680) has disclosed that it received an order on February 4, 2025, from the Office of the Assistant Commissioner, Central Goods & Service Tax (CGST) Division-I, Derabassi, Mohali, Punjab, regarding a tax dispute. The order denies the transitional credit claimed by the company in Punjab, levying a total tax demand of ₹1,77,51,624, including tax, interest, and penalties.Key Details of the Order:
| Particulars | Details |
|---|---|
| Authority | Assistant Commissioner, CGST Division-I, Mohali, Punjab |
| Order Reference | ZD030225002875Q |
| Date of Order | February 4, 2025 |
| Amount Demanded | ₹54,07,654 (Tax) + ₹69,36,316 (Interest) + ₹54,07,654 (Penalty) = ₹1,77,51,624 |
| Reason for Demand | Denial of transitional credit for FY 2017-18 due to missing original documents |
| Impact on Company | No material financial or operational impact |
| Next Steps | Pfizer plans to appeal the order |
Company’s Response & Strategic Outlook
Pfizer Limited has stated that it does not find the tax demand maintainable and intends to file an appeal against the order. The company reassured investors that the order will not have any material impact on its financials, operations, or business activities.This development comes as part of regulatory scrutiny over transitional credit claims under the GST framework. Pfizer’s decision to challenge the order aligns with similar industry-wide disputes regarding legacy tax credits during India's GST transition phase.
Investor Considerations
- The financial impact is minimal, reducing concerns over profitability or cash flows.
- The company has a strong legal stand and will appeal the order.
- Regulatory tax assessments are common, and Pfizer appears well-positioned to resolve the issue.