Jubilant Generics Faces Rs 52.75 Cr GST Demand Over Alleged Inadmissible IGST Refund
New Delhi: Jubilant Pharmova Limited has disclosed that its wholly-owned subsidiary, Jubilant Generics Limited, has received a show cause notice from the Joint Commissioner, CGST Division, Roorkee, Uttarakhand, proposing a demand related to the alleged inadmissible refund of Integrated Goods and Services Tax (IGST) for the financial years 2020-21 and 2021-22.
According to the company, the notice concerns the alleged simultaneous availment of IGST refund under Rule 96 of the CGST Rules, 2017, and benefits under the Advance Authorisation Scheme. The tax authority has alleged that such simultaneous availment was in violation of Rule 96(10) of the CGST Rules.
The Joint Commissioner, CGST Division, Roorkee, has proposed a GST demand of ₹52.75 crore, along with interest, which has not been quantified, and an equal penalty of ₹52.75 crore.
Jubilant Pharmova stated that Jubilant Generics Limited will file a detailed reply before the Joint Commissioner, CGST Division, Roorkee, contesting the proposed demand. The company maintained that the show cause notice is factually and legally incorrect, bad in law and was issued without properly verifying the facts and examining the matter.
The company further said that it has a strong case in its favour and will submit its response on merits before the tax authority. Consequently, Jubilant Pharmova said it expects no financial or operational impact from the matter.
Also Read: Tax Setback for Jubilant Generics as Department Orders Rs 107.89 Cr Adjustment
