Mankind Pharma slapped over Rs 2 crore penalty by GST authority

New Delhi: Mankind Pharma has said in a BSE filing that the tax authority in Kolkata has imposed a GST-related penalty of over Rs 2 crore on the Company over alleged mismatch in figures for the period of FY18 to FY22.

"The Company has received an Order on January 14, 2025 from Office of the Commissioner of Kolkata South CGST & CX– issued by Additional Commissioner (“Department”) under Section 74 of the CGST Act, 2017," the Company stated.

"GST Authority has passed the Order, pursuant to GST audit for the FY 2017-18 to FY 2021-22 on the contention that there is a mismatch in the figures reported in various statutory returns Viz. GSTR-9, GSTR-3B, GSTR-1 and GSTR -2A," filing added.

"Order-in-Original passed u/s 74 of Central Goods and Services Tax Act, 2017 covering FY 2017-18 to FY2021-22 levying penalty of INR 2,27,83,935/," it said.

Based on the assessment of facts and prevailing law, the Company is of the view that the demand including penalty levied is arbitrary and unjustified. The Company does not agree with the order and will take appropriate action(s) for the same including filing of an appeal if required.

There is no material impact on financials, operations or other activities of the Company.

Medical Dialogues team had earlier reported that Zydus Wellness Products Limited, a wholly owned subsidiary of Zydus Wellness, had received a GST demand of Rs 56.33 crores along with applicable interest and penalty from the tax authority.

Read also: Zydus Wellness subsidiary receives GST demand of Rs 56.33 crore

Founded in 1991 and commenced operation in 1995, Mankind Pharma is a pharmaceutical company engaged in developing, manufacturing and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.