Alkem Laboratories Faces ₹35.11 Crore GST Demand Over Alleged Double ITC Claim
Alkem Laboratories received a GST order confirming a Rs. 35.11 crore demand over alleged double Input Tax Credit claims, which the company plans to appeal
Alkem Laboratories Faces ₹35.11 Crore GST Demand Over Alleged Double ITC Claim
Alkem Laboratories Faces ₹35.11 Crore GST Demand Over Alleged Double ITC Claim
Alkem Laboratories Limited has disclosed that it received an order from the GST authorities confirming a tax demand of over Rs. 35 crore. According to the company report, the order was passed by the Commissioner (Appeals) – II, CGST and Central Excise, Mumbai.
The order relates to the period from July 2017 to March 2022, covering nearly five years of GST operations. It confirmed a demand of Rs. 35.11 crore in Goods and Services Tax, along with a penalty of Rs. 3.51 crore and applicable interest.
The dispute mainly concerns Input Tax Credit (ITC), a benefit that allows businesses to reduce their tax liability on sales by claiming credit for taxes already paid on inputs.
The GST department has alleged that Alkem claimed ITC twice in its monthly return filings (Form GSTR-3B), while the same credits were not reflected in the government’s reconciliation statement (FormGSTR-2A).
On this basis, the department denied the ITC and raised the demand.
Alkem Laboratories has said that it disagrees with the findings of the tax authorities. In its disclosure, the company stated that it would contest the order and take appropriate legal action, including filing an appeal. It also clarified that there is no material impact on its financial or operational performance as a result of the order. The company believes it has strong factual and legal grounds to defend its case.
The company further explained that there is no immediate cash outflow expected from this demand because it has sufficient input tax credit balance available, apart from the disputed amount. This means the company can adjust the liability if required, while it continues to fight the case through legal remedies.
About Company
Alkem Laboratories is one of India’s leading pharmaceutical companies, known for its wide range of generic and branded medicines. The outcome of this GST dispute will now depend on the company’s appeal and further legal proceedings.
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