Alkem Laboratories to contest INR 2.3m GST demand

Alkem Laboratories Limited disclosed on September 24, 2025, that it received an order from the additional commissioner, Central Goods & Service Tax (Appeals) Commissionerate, Panchkula, Haryana. The order, issued under the Goods and Services Tax Act, 2017, confirms a GST demand of INR 2,339,799 for the period July 2017-2018 to 2020-2021. This demand includes applicable interest and a penalty of INR 2,339,799, under the IGST Act, 2017, CGST Act, 2017, and SGST Act, 2017.

The statutory order primarily alleges the non-reversal of common Input Tax Credit (ITC) attributed to exempt supplies. Alkem Laboratories explicitly stated that it does not agree with the demand order and plans to contest it.

The company believes there will be no material impact on its financial, operational, or other activities due to the appeal order. Alkem Laboratories maintains that the dispute under the appeal order is not tenable and that it possesses adequate factual and legal grounds to substantiate its position under law.