Jubilant Pharmova Receives Rs 87-Cr GST Demand Notice

New Delhi: Jubilant Pharmova Ltd on Tuesday said it has received a show cause notice from GST authority in Mysore demanding tax, interest and penalty totalling to Rs 87.31 crore for the 2022-23 financial year.

The demand includes GST of Rs 33.58 crore, interest of Rs 20.15 crore and a penalty of Rs 33.58 crore, the company said in a regulatory filing.

The notice, issued by the Assistant Commissioner of Commercial Taxes (Enforcement)-4, Mysore, Karnataka, pertains to issues such as alleged ineligible Input Tax Credit (ITC), excess ITC availed and differential tax liability based on E-waybill records.

The pharmaceutical company said that the notice is “factually and legally incorrect”.

“The show cause notice is factually and legally incorrect, bad in law and has been issued without verifying the facts and examining the issue properly, and no opportunity was provided to the company before issue of the notice. The company has a strong case in its favour,” the filing said.

The company will file a detailed reply on merits with documentary evidence, Jubilant Pharmova said, adding that it expects no significant financial or operational impact from the development.

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