Alkem laboratories contests ₹3.51 bn GST demand

Alkem Laboratories Limited announced on September 22, 2025, that it has received an order from the Commissioner (Appeals) - II, CGST & Central Excise, Mumbai, confirming a Goods and Services Tax (GST) demand of ₹3,51,15,2690. This demand, along with applicable interest and a penalty of ₹3,51,15,268, pertains to the period of July 2017 to March 2022, under various provisions of the IGST, CGST, and SGST Acts of 2017. The order, received on September 20, 2025, primarily alleges the denial of Input Tax Credit (ITC) due to a double claim in Form GSTR-3B not reflected in Form GSTR-2A.

The pharmaceutical company stated it does not agree with the demand order and intends to contest it through appropriate legal remedies. Alkem Laboratories maintains that the dispute is not tenable, citing adequate factual and legal grounds to substantiate its position under law. The company believes there will be no material impact on its financial, operational, or other activities.

Alkem Laboratories clarified that no cash outflow is anticipated as the company possesses sufficient input tax credit apart from the disputed amount. The notification was made in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.