MP GST Dept Slaps Rs 3.79 Crore Tax, Penalty Demand on GSK Pharma
New Delhi: GlaxoSmithKline Pharmaceuticals Limited has received a GST demand order of Rs 3.79 crore from the Madhya Pradesh GST authorities after certain input tax credits claimed by the company were disallowed for multiple financial years.
The order was issued by the Deputy Commissioner of CGST and Central Excise, Division-III, Indore, and is dated January 21, 2026. The company received the communication on February 21, 2026, and subsequently disclosed the development to stock exchanges in compliance with regulatory requirements.
As per the order, the total demand amounts to Rs 3,79,25,656. This includes tax of Rs 1,89,62,828 and a penalty of Rs 1,89,62,828, while the interest component has not yet been quantified by the authorities. The demand relates to GST input tax credit matters concerning the financial years 2019-20, 2020-21, 2021-22, and 2022-23.
The tax authorities raised the demand following their review of the company’s GST filings and related claims of input tax credit in the state of Madhya Pradesh. Input tax credit allows businesses to reduce their tax liability by claiming credit for GST paid on purchases, subject to compliance with eligibility and documentation requirements.
GlaxoSmithKline (GSK) Pharmaceuticals Limited clarified in its disclosure that the order currently has no impact on the company’s financial or operational performance. The company further stated that it is evaluating the demand order and will take appropriate action as necessary.
GlaxoSmithKline Pharmaceuticals Limited, the Indian subsidiary of global healthcare major GSK, is engaged in the manufacture and marketing of pharmaceutical products and vaccines in India.
