- DGGI intensifying scrutiny of suspected tax evasion by major pharmaceutical companies
- Notices issued to Sun Pharma, Mankind Pharma, Zydus Healthcare, and Cipla for under-payment of GST
- Combined tax liability close to Rs 1,000 crore, with Rs 450-500 crore paid so far
- Key issues include non-payment of GST on brand transfer sales, fake ITC claims, and non-payment under reverse charge mechanism
- Contention over reversal of ITC for expired drugs returned by stockists
- Pharma companies analyzing legality of notices and seeking clarity from government
- Legal actions, fines, and penalties possible if companies do not comply with GST demands
- Clarity on issues crucial to avoid litigation involving tax, interest, and penalties for pharmaceutical sector
Source: knnindia.co.in
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
