Alkem Laboratories Limited has informed the Exchange about Action(s) initiated or orders passed
ALKEM · price
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Awaiting price reaction for this filing.
Alkem Laboratories has received an order from the Commissioner (Appeals) of CGST & Central Excise, Mumbai, confirming a GST demand of Rs. 35.12 crore along with interest and penalty of Rs. 3.51 crore, totaling around Rs. 38.63 crore. The demand relates to the period from July 2017 to March 2022 and is based on an alleged double claim of Input Tax Credit in GSTR-3B that was not reflected in GSTR-2A. The company has stated that it does not agree with the order and will file a further appeal to contest it. Alkem has also clarified that there is no material impact on its financials or operations, noting it has sufficient input tax credit available to avoid any cash outflow.
Shares may see a brief negative reaction due to the tax demand, but the company's own assessment of 'no material impact' and its plan to appeal should limit long-term damage. Investors should track further legal developments, though the company's claim of sufficient ITC buffer reduces near-term cash flow risk.