Piramal Slapped With Rs 1,502 Crore GST Demand Over Pharma Business Sale
Delhi: The Deputy Commissioner of State Tax, Maharashtra, has issued a GST demand of Rs 1,502 crores (approximately USD172 million) to Piramal Enterprises for the sale of its pharmaceutical business to Piramal Pharma in FY 2021, citing unpaid or short-paid tax along with interest and penalties.
The order, dated 27th February 2025, cites unpaid or short-paid tax along with interest and penalties, adding regulatory pressure on one of India's prominent pharmaceutical firms.
The dispute centers around the sale of Piramal’s pharma business to its subsidiary, Piramal Pharma Limited, in FY 2021, a Rs 4,487 crore transaction. The tax department contends that this transaction does not qualify as a slump sale, but rather an itemized sale, making it subject to an 18% GST levy on the total consideration, including the sale of investments, which are typically outside the GST framework.
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