Home >  News >  Industry >  Pharma News >  Piramal Slapped With Rs...

Piramal Slapped With Rs 1,502 Crore GST Demand Over Pharma Business Sale

By - Farhat Nasim
Published On 2025-03-03 13:57 GMT   |   Update On 2025-03-03 13:57 GMT
Advertisement

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.

Advertisement

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.

Also Read: Piramal Pharma to pay USD 407400 to resolve dispute with VetDC

Piramal Enterprises, which has been an active player in pharmaceutical M&A, has strongly contested this classification, arguing that the tax demand, including penalties, is unjustified. The company maintains that it has strong legal grounds to dispute the order and has confirmed its intent to pursue all necessary legal avenues to have it overturned.

While the quantum of tax demand is substantial, Piramal Enterprises has reassured its stakeholders and investors that the order will not impact its profit and loss statement for the financial year. The company remains optimistic about a favorable resolution and continues to work on legal remedies to challenge the tax authorities' stance.

Tags:    

Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.

NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.

Farhat Nasim

Farhat Nasim joined Medical Dialogue an Editor for the Business Section in 2017. She Covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She is a graduate of St.Xavier’s College Ranchi. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751

Comments Policy
Our comments section is governed by our Comments Policy . By posting comments at Medical Dialogues you automatically agree with our Comments Policy , Terms And Conditions and Privacy Policy .

Similar News

42 dead, 8 still missing in Sigachi pharma plant explosion

Akums Drugs and Pharma: Jitendra Mishra steps down as Senior Vice President - IT

Biocon Biologics gets marketing nods in UK for Vevzuo, Evfraxy

Indian pharma exports strong at USD 4.9 billion in April-May: Pharmexcil

Expert Panel Approves Post-Marketing Surveillance Study of Eculizumab (Soliris) by AstraZeneca in India

Emcure Pharma incorporates new wholly-owned subsidiary Emcure Wellness

JnJ seeks indication extension of Akeega from EMA for adults with metastatic hormone-sensitive prostate cancer, HRR gene alterations

Govt Panel Proposes Braille Cards, Voice-Enabled QR Codes on Medicine Packs to Aid Visually Impaired