Glenmark Pharmaceuticals Faces GST Demand and Penalty for FY 2019-20 and 2020-21

Glenmark Pharmaceuticals Ltd. has disclosed an order passed by the Joint Commissioner of Central Goods & Service Tax and Central Excise, Mumbai East Commissionerate, demanding GST amount along with interest and penalty for the financial years 2019-20 and 2020-21. The order alleges that Glenmark treated the transaction of sale of brand in FY 2020-21 as a mixed supply, which is liable for a higher rate of GST. The demand includes Rs. 16,05,41,509/- each for CGST/SGST, applicable interest, and penalty equivalent to the tax amounts. Glenmark is not accepting this demand and will file an appeal before the appropriate authority. The company states that there is no material impact on its financials, operations, or other activities due to this order.