Panacea Biotec faces ₹114m GST demand over corporate guarantee

Panacea Biotec announced on September 27, 2025, that it has received a show cause notice from the commissioner, Central GST (Audit) Commissionerate, Punjab. The notice pertains to an alleged non-payment of GST amounting to ₹114,403,068 on a corporate guarantee of ₹8.64 billion. This alleged non-payment covers a period from April 6, 2019, to March 15, 2022.

The notice relates to a corporate guarantee provided to Debenture Trustee Vistra ITCL India Limited, linked to the transfer of the pharmaceutical formulations business to Panacea Biotec Pharma Limited, a wholly-owned subsidiary. The company is required to respond to the notice within 30 days of receipt, explaining why the GST, along with applicable penalties and interest, should not be demanded.

Panacea Biotec, following an assessment and discussions with legal counsel, believes the demand is not maintainable and plans to take appropriate action. The company does not anticipate any significant financial or operational impact from this claim.