Piramal Pharma Limited received a GST demand of ₹4.06 crore along with an equivalent penalty for the fiscal years 2021 to 2023. The order stems from disputes over input tax credit eligibility during the post-demerger transition period.

The Additional Commissioner, CGST & Central Excise, Mumbai East Commissionerate issued the Order-in-Original on September 28, 2026. The demand relates to input tax credits availed by the company during FY21 to FY23, specifically concerning invoices from the post-demerger business transition, Input Service Distributor (ISD) registrations, and overseas procurement support cross-charged by Piramal Enterprises Limited.

Dispute details and financial impact

The authority confirmed the ITC demand under the Central Goods and Services Tax Act, 2017, Maharashtra GST Act, 2017, and Integrated GST Act, 2017. The total exposure includes the principal demand and an equal penalty amount.

The company stated it has carefully reviewed the order and maintains a strong belief in its position on both facts and law. Consequently, Piramal Pharma intends to challenge the order by filing an appeal before the appropriate appellate authority within prescribed timelines.

Management stance

Management does not expect the order to have any material impact on its financials, operations, or other activities. The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations, ensuring transparency regarding significant regulatory developments.

Piramal Pharma 's Morpeth facility has received seven observations following a US FDA inspection of the manufacturing site.

Inspection findings at Morpeth

The US Food and Drug Administration conducted an inspection of Piramal Pharma's Morpeth facility, resulting in seven observations being issued to the company. The Morpeth site is one of the company's key manufacturing locations, and regulatory inspections by the US FDA are a standard part of oversight for facilities supplying or seeking to supply the US pharmaceutical market.

What the observations mean

Observations issued by the US FDA during an inspection are documented in a Form 483, which lists inspectional observations noted by the investigator. These observations indicate areas where the agency has identified conditions or practices that may constitute violations of regulations administered by the FDA. Companies are typically required to respond to such observations with corrective and preventive action plans.