NSE/BSE Codes: NSE Symbol: PPLPHARMA, BSE scrip code: 543635
Summary of Key Information:
Nature of Event / Disclosure:
Regulatory disclosure pursuant to Regulation 30 of SEBI Listing Regulations regarding receipt of a GST Order-in-Original.
Involved Parties / Authorities:
- Additional Commissioner, CGST & Central Excise, Mumbai East Commissionerate (Issuing Authority)
- Piramal Pharma Limited (Company)
- Piramal Enterprises Limited (Mentioned in context of overseas procurement support and operational expenses cross-charges)
Date / Timeline of Event:
- Date of Order Receipt: 28th September, 2026
- Date of Disclosure to Exchanges: 29th September, 2026
- Period Under Scrutiny: Financial Years 2020-21 to 2022-23
Brief Description of Outcome / Dispute:
The Company received Order-in-Original No. ME/ADC/RM/40/GST/2026-27 issued by the Additional Commissioner, CGST & Central Excise, Mumbai East Commissionerate. The order relates to GST audit proceedings concerning the eligibility of certain input tax credits availed by the Company during FY 2020-21 to FY 2022-23. The disputed credits include:
- Credits pertaining to invoices issued during the post-demerger business transition period
- Credits associated with the Company's Input Service Distributor (ISD) registration
- Certain overseas procurement support and operational expenses cross-charged by Piramal Enterprises Limited
Impact of Outcome:
Financial Impact:
The Authority has confirmed a demand of Input Tax Credit (ITC) aggregating to ₹4,06,03,220 (Four Crore Six Lakh Three Thousand Two Hundred Twenty Rupees) along with applicable interest. The Authority has also imposed an equivalent penalty of ₹4,06,03,220 under the applicable provisions of:
- Central Goods and Services Tax Act, 2017
- Maharashtra Goods and Services Tax Act, 2017
- Integrated Goods and Services Tax Act, 2017
Total potential financial impact (excluding interest): ₹8,12,06,440 (Eight Crore Twelve Lakh Six Thousand Four Hundred Forty Rupees)
Operational / Business / Strategic Impact:
The Company has stated that it does not expect the Order to have any material impact on its financials, operations, or other activities.
Other Implications:
The Company continues to strongly believe that it has a meritorious case, both on facts and in law.
Next Steps / Required Actions:
The Company intends to challenge the Order and will be filing an appeal before the appropriate appellate authority within the prescribed timelines.