Mankind Pharma Faces ₹2.27 Crore GST Penalty Over Alleged Reporting Discrepancies

Mankind Pharma Ltd, which holds top positions in the Pharma sector, disclosed that the Kolkata GST authorities imposed a penalty of Rs. 2.27 crore for the allegation of discrepancies in reported figures for the financial years 2018 to 2022.

The company disclosed that the penalty order was received from the office of the Commissioner of Kolkata South CGST & CX and issued by the Additional Commissioner. The company also stated in a regulatory filing that the penalty order was received on January 14, 2025.

The company stated that the penalty order was passed by the GST authority pursuant to the audit for FY 2017-2018 to FY 2021-2022. The company revealed that the order was passed based on the contention that there was a mismatch in the figures reported in various statutory returns. The order imposes a penalty of approximately Rs. 2,27,83,935.

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The top pharmaceutical company based on the assessment of facts and prevailing law criticized the penalty order as ‘arbitrary and unjustified’. The company also added that an appeal will be preferred to the appropriate authority.

The company further assured the stakeholders that the penalty would have no notable impact on its financials, operations, or other activities. It is also significant to mention that Mankind Pharma ranks among the top five Pharmaceutical companies and has a considerably large market in the subcontinent. 

Mankind Pharma is an Indian Pharmaceutical company which has headquarters in New Delhi. The company remains in the top position in production of antibiotics, cardiovascular medications and nutritional supplements. The company ranks fourth in sales and has several best selling products. The Pharma company also has six research and development centres across the subcontinent. 

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