Piramal Enterprises Ltd. (PEL) shares fell 2% after the company received a tax demand order of ₹1,502 crore from the Deputy Commissioner of State Tax, Maharashtra. The order, issued under Section 73(9) of the CGST/SGST Act, 2017, pertains to the financial year 2020-21.
The dispute arises from the 2021 slump sale of Piramal Pharma Limited’s ‘Business Undertaking’ and its subsidiaries for ₹4,487 crore. The GST department claims this was an itemized sale, not a slump sale, making it taxable at 18%. The department has also included investment values, which are usually outside GST’s scope.
In response, Piramal Enterprises has stated it has strong grounds to contest the demand, calling the tax, interest, and penalties unjustified. The company plans to appeal the order and expects a favorable resolution. It also clarified that the ruling will not impact its profit and loss statement.
Piramal Enterprises’ shares opened at ₹862.55, reaching a high of ₹878.05 and a low of ₹853.20. The stock remains below its 52-week high of ₹1,275 but above the 52-week low of ₹736.60.
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