Alkem Laboratories receives GST order confirming ₹39 crore demand and penalty; to file appeal
Published on 22/09/2025 09:07 PM
Alkem Laboratories receives GST order confirming ₹39 crore demand and penalty; to file appealThe order in appeal, received on September 20, 2025, pertains to the period July 2017–2018 to March 2022 and confirms a GST demand of ₹35.11 crore along with applicable interest and a penalty of ₹3.5 crore under the provisions of the IGST Act, 2017, CGST Act, 2017, and SGST Act, 2017. Shares of Alkem Laboratories Ltd ended at ₹5,481.80, down by ₹52.50, or 0.95%, on the BSE.By Jomy Jos Pullokaran September 22, 2025, 9:07:17 PM IST (Published)2 Min ReadDrug firm Alkem Laboratories Limited on Monday (September 22) said it has received an order from the Commissioner (Appeals) – II, CGST & Central Excise, Mumbai, under the Goods and Services Tax Act, 2017.
The order in appeal, received on September 20, 2025, pertains to the period July 2017–2018 to March 2022 and confirms a GST demand of ₹35.11 crore along with applicable interest and a penalty of ₹3.5 crore under the provisions of the IGST Act, 2017, CGST Act, 2017, and SGST Act, 2017.
According to the company, the order mainly alleges denial of Input Tax Credit (ITC) on account of double claim of ITC in Form GSTR-3B, as the same is not reflected in Form GSTR-2A. Alkem Laboratories said it does not agree with the demand order and will contest the same.
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The company further stated that there is no material impact on its financial, operational, or other activities due to the appeal order. It added that it has adequate factual and legal grounds to substantiate its position under the law and will pursue appropriate legal remedies against the order.
Alkem clarified that no cash outflow is expected, as it has sufficient input tax credit available apart from the disputed ITC. The company said it is in the process of taking necessary action, including filing an appeal against the order.
Shares of Alkem Laboratories Ltd ended at ₹5,481.80, down by ₹52.50, or 0.95%, on the BSE.
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