Panacea Biotec Limited has disclosed receiving a significant GST demand order from tax authorities, marking an escalation in ongoing tax litigation proceedings. The pharmaceutical company informed stock exchanges about the development under regulatory disclosure requirements on March 31, 2026.

GST Demand Details

The company received a demand order dated March 30, 2026, from the Office of the Joint Commissioner, Central Goods & Services Tax Sub-Commissionerate Mohali, Chandigarh. The order raises a total demand of ₹22.88 crore under the Central/Integrated Goods and Services Tax Act, 2017.

Background and Timeline

The tax dispute stems from allegations of non-payment of GST on supplying a corporate guarantee. The case involves a corporate guarantee amounting to ₹864 crore provided for 1,074 days from April 6, 2019, to March 15, 2022.

Legal Protection Measures

Panacea Biotec has taken proactive legal steps to protect its interests. The company filed a writ petition before the Punjab & Haryana High Court on November 24, 2025. The High Court has granted an interim stay order that prevents tax authorities from taking coercive action against the company, even if a final assessment order is passed or demand is raised.

The company also submitted its detailed response to the Show Cause Notice on March 27, 2026, just three days before receiving the demand order.

Company's Position

Panacea Biotec maintains a strong stance against the GST demand. According to the company's assessment, the demand is not maintainable under applicable tax laws. The pharmaceutical firm has committed to taking all necessary legal steps as deemed appropriate to contest the demand.

Regarding financial implications, the company stated it does not envisage any relevant impact on its financial, operational, or other business activities. This position reflects the company's confidence in its legal strategy and the protection afforded by the High Court's interim stay order.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI LODR Regulations, demonstrating the company's commitment to transparency with stakeholders. The comprehensive details provided include the nature of communication, timeline, financial implications, and remedial actions taken by the company.

Panacea Biotec Limited announced the resignation of CA Rajesh Jain as Non-Executive Independent Director, effective from the close of business hours on June 30, 2026. The resignation applies to both the company and its material wholly owned subsidiary, Panacea Biotec Pharma Limited.

Resignation Details

CA Rajesh Jain (DIN: 10619014) submitted his resignation via email on March 30, 2026. His decision stems from existing professional commitments and the increasing time demands arising from evolving regulatory and corporate governance requirements, resulting in his inability to devote adequate time, attention, and diligence required for the role.

Committee Positions Impact

Consequently, CA Jain will cease to be the Chairman or member of various Board Committees of both companies effective from the close of business hours on June 30, 2026, or such other earlier date as may be decided by the Board. His committee positions include:

• Audit Committee
• Nomination and Remuneration Committee
• Various other Board Committees

Other Directorships

CA Rajesh Jain currently holds directorships in other listed entities:

Company Statement

The Board of Directors and Management of Panacea Biotec Limited and Panacea Biotec Pharma Limited expressed deep appreciation and gratitude to CA Rajesh Jain for his contribution and guidance towards the business growth during his association with both companies. CA Jain confirmed that there are no other material reasons for his resignation beyond those mentioned.

Regulatory Compliance

The resignation disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with the required annexures including the resignation letters and detailed information as per SEBI Master Circular dated November 11, 2024.