Panacea Biotec Limited has informed the Exchange about receipt of a Show Cause Notice from the office of the Commissioner, Central GST (Audit) Commissionerate, Punjab under the Central Goods and Services Tax Act, 2017
PANACEABIO · price
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Panacea Biotec has received a Show Cause Notice dated September 26, 2025, from the Central GST (Audit) Commissionerate, Punjab, demanding Rs. 11.44 crore in GST that the tax authorities allege was not paid on a Corporate Guarantee of Rs. 864 crore. The guarantee was issued to Vistra ITCL India Limited (acting as Debenture Trustee) for 1,074 days between April 6, 2019 and March 15, 2022, in connection with the transfer of the company's pharmaceutical formulations business to its wholly owned subsidiary, Panacea Biotec Pharma Limited. The company has 30 days to respond before the Joint/Additional Commissioner, CGST Sub-Commissionerate, Mohali. The matter could also attract applicable interest and penalty under Sections 50 and 74 of the CGST Act.
The company believes the demand is not maintainable based on its legal counsel's assessment and does not foresee any significant impact on its financials, operations, or other activities. Shareholders should monitor the outcome of the company's response, though management is downplaying the risk.