GSK Pharma Hit with Rs. 3 Crore GST Shock

GlaxoSmithKline Pharmaceuticals has confronted the GST Department of Madhya Pradesh with an order that raised a total demand of over Rs. 3 crore.

The order was made by the Joint Commissioner (Appeals) of the office of the Commissioner (Appeals), CGST, Customs and Central Excise, Indore, dated June 17, 2025, and received by the company on June 18, 2025.

The GST demand includes a tax amount of Rs. 1,37,42,263 and a penalty of Rs. 1,69,26,169. While the interest component has not been specified in the order, the total demand raised amounts to Rs.3,06,68,432.

The demand has risen due to input tax credit-related issues. The issue is specifically a mismatch between the Company’s GST returns and details reported by suppliers in their GST returns

The company has clarified that this order will not impact its financial operations. It is currently reviewing the order and will take suitable action as needed.