Piramal Enterprises Ltd has received an order from the Deputy Commissioner of State Tax, Maharashtra, demanding ₹1,502 crore under Section 73(9) of the CGST/SGST Act, 2017. The tax demand pertains to the financial year 2020-21, with allegations of short payment or non-payment of GST along with interest and penalties.
The order primarily concerns the slump sale of the ‘Business Undertaking’ of Piramal Pharma Limited in 2021, along with the transfer of its subsidiary companies for a total consideration of ₹4,487 crore. The GST department contends that the sale is not a slump sale but an itemized sale, thereby levying GST at 18% on the total sale consideration, including the value of investments that are outside the GST scope.
Piramal Enterprises has stated that it has strong grounds to contest the tax demand, asserting that the tax, interest, and penalty under GST law are unjustified. The company plans to appeal the order, expecting a favorable outcome. It also clarified that the order would not impact the profit and loss statement for the year.
Stock Performance today:
Following the news of the tax demand, Piramal Enterprises’ stock price declined by 3.44%, closing at ₹874.15 on the NSE today. The stock opened at ₹900.00, reached a high of ₹900.00, and a low of ₹863.55 during the trading session.
