Panacea Biotec Limited disclosed on July 24, 2026, that its wholly owned subsidiary, Panacea Biotec Pharma Limited (PBPL), has received a show cause notice from the Goods and Services Tax authority in Delhi. The notice, issued under Section 73 of the Delhi Goods & Services Tax / Central Goods & Services Tax Act & Rules, 2017, alleges an excess claim of Input Tax Credit (ITC) in the annual return filed for Financial Year 2022-23. The total liability demanded is ₹4.06 crore, which includes tax, interest, and penalty. This development requires shareholder attention as it represents a potential contingent liability, although the company states it does not foresee adverse operational impact.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The show cause notice was dated July 23, 2026, and was issued by the office of the Assistant Commissioner, GST, Delhi. The matter is currently at the show cause notice stage, with no penalty or restriction imposed yet.

Breakdown of Alleged Liability

The notice specifies a total financial demand of ₹4.06 crore. This amount is structured across three components: principal tax, interest accrued, and a penalty for the alleged non-compliance. The details are outlined below:

Company Response and Next Steps

Panacea Biotec Pharma Limited is currently collating relevant details to prepare a draft reply against the notice. The company asserts that it does not foresee any adverse impact on its financial, operational, or other activities arising from this show cause notice. No further action has been taken by the listed entity beyond initiating the response preparation process.

What the Numbers Show

The composition of the ₹4.06 crore liability reveals that interest constitutes a significant portion of the demand, accounting for approximately 38% of the total amount. The penalty component is relatively minor at ₹0.23 crore, suggesting the primary focus of the authority is on recovering the principal tax and associated statutory interest rather than imposing punitive measures at this stage. The allegation pertains specifically to FY22-23, indicating a retrospective review of input tax credit claims rather than a current-period compliance issue.

Panacea Biotec has filed an appeal before the Hon'ble High Court of Punjab and Haryana at Chandigarh against the fourth award issued by the Industrial Tribunal. The awards, dated March 19, 2026, were received by the company on April 9, 2026, from the Presiding Officer in the rank of Additional District Judge of Industrial Tribunal, S.A.S. Nagar, Mohali. The company stated that it does not foresee any material adverse impact on its financial, operational, or other activities arising from these awards based on legal opinion.

Legal Proceedings Overview

The company has now formally challenged the fourth award, having previously filed appeals against three other awards on July 7, 2026. The Hon'ble High Court has heard the three prior appeals and passed an interim order stating that no coercive steps shall be taken against the company while the matters are sub-judice.

Key Highlights

• Panacea Biotec has filed an appeal against the fourth award from the Industrial Tribunal dated March 19, 2026.
• The Hon'ble High Court has passed an interim order preventing coercive steps against the company regarding the three earlier appeals.
• The awards pertain to the period from 2014 onwards.

The tribunal awards set aside the transfer of 23 workmen and granted relief of full back wages from the date of transfer, awarded reasonable wage revision, and directed the reinstatement of workers with 50% back wages from the date of termination. The interim relief secured by the company ensures that no coercive measures can be enforced while the legal proceedings continue.