AstraZeneca Pharma receives GST order of Rs 9.24 crore for FY 2018-19
AstraZeneca Pharma India Limited received an order from the Deputy Commissioner of State Tax (Appeal) for FY 2018-19 involving claims of Rs 9.24 crore. The order, passed under section 107 of the Maharashtra Goods and Services Act, 2017, upholds adjustments related to supplies under the Patient Access Program. The company intends to challenge the order before the GST Appellate Tribunal.

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AstraZeneca Pharma India Limited received an order from the Deputy Commissioner of State Tax (Appeal) for FY 2018-19 involving claims of Rs 9.24 crore, impacting its financial position regarding tax liabilities. The order, passed under section 107 of the Maharashtra Goods and Services Act, 2017, upholds certain adjustments initially made by the Assistant Commissioner of State Tax Investigation. These adjustments relate to supplies made by the company under its Patient Access Program.
The order is a development in an appeal filed by the company on June 29, 2020, against the original order issued by the Assistant Commissioner of State Tax Investigation. This prior order was intimated to the stock exchanges on August 14, 2023. The company stated that the matter will be suitably challenged in due course by filing an appeal before the GST Appellate Tribunal (GSTAT).
The expected overall financial implication cannot be determined at this stage, as the matter is subject to further legal proceedings. The quantum of claims stands at Rs 9.24 crore, excluding interest and penalty. The company has not yet quantified the potential impact of interest or penalties that may arise from the order.
Details of the dispute
The following table outlines the key details of the litigation and the order received:
| Sl. No. | Particulars | Details |
|---|---|---|
| 1. | Name of the opposing party | Deputy Commissioner of State Tax (Appeal) |
| 2. | Brief details of dispute/litigation | Company has received an appeal order for the financial year 2018-19, wherein certain adjustments initially made by the Assistant Commissioner of State Tax Investigation relating to supplies made by the Company under Patient Access Program, have been upheld by the Deputy Commissioner of State Tax (Appeal). |
| 3. | Court/tribunal/agency where the litigation is filed | The order was passed by the Deputy Commissioner of State Tax (Appeal). The matter will be challenged before the GST Appellate Tribunal (GSTAT) by filing an appeal. |
| 4. | Expected financial implications, if any, due to compensation, penalty etc. | Matter will be suitably challenged in due course. The expected overall financial implication cannot be determined at this stage. |
| 5. | Quantum of claims, if any | Rs. 9.24 crores (approx.) excluding interest and penalty. |
The disclosure was made to the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Tanya Sanish, Company Secretary & Compliance Officer, signed the disclosure on behalf of AstraZeneca Pharma India Limited.
Historical Stock Returns for AstraZeneca Pharma
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.50% | -1.54% | +3.67% | -6.62% | -8.80% | +126.16% |
What is the expected timeline for AstraZeneca Pharma India to file an appeal before the GST Appellate Tribunal (GSTAT)?
How might this tax dispute impact AstraZeneca's future Patient Access Program initiatives or similar corporate social responsibility activities?
Could this ruling set a precedent for other pharmaceutical companies facing similar GST scrutiny regarding patient assistance programs?


































