Aarti Pharmalabs Limited Receives Rs 2.60 Lakh Penalty from CGST Authority
Aarti Pharmalabs Limited has received a Rs 2.60 lakh penalty from CGST and Central Excise authority under Section 74 of CGST Act, 2017. The penalty is part of a larger demand of Rs 31,15,608 related to alleged excess Input Tax Credit availment and incorrect tax liability declarations for FY2022-23 and FY2023-24. The company states no material impact on financials or operations is expected.

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Aarti Pharmalabs Limited has disclosed receiving a penalty of Rs 2.60 lakhs from the CGST and Central Excise authority, as mandated under Regulation 30 of SEBI Listing Regulations. The penalty was imposed by the Office of the Assistant Commissioner, CGST and Central Excise, Circle-VIII, Vapi, Gujarat, with the order received on February 3rd, 2026.
Penalty Details and Regulatory Action
The penalty has been imposed under Section 74 of the CGST Act, 2017, forming part of a larger alleged demand totaling Rs 31,15,608. This demand amount is inclusive of tax, interest, and penalty components related to GST compliance issues.
| Parameter | Details |
|---|---|
| Penalty Amount | Rs 2.60 lakhs |
| Total Demand | Rs 31,15,608 (inclusive of tax, interest, penalty) |
| Authority | CGST & Central Excise Circle –VIII Vapi |
| Legal Provision | Section 74 of CGST Act, 2017 |
| Order Date | February 3rd, 2026 |
Nature of Alleged Violations
The regulatory action stems from alleged discrepancies in the company's GST compliance for financial years 2022-23 and 2023-24. The specific violations identified by the authority include:
- Alleged excess availment of Input Tax Credit
- Incorrect declaration of tax liability
- Discrepancies in data submitted under various GST returns including GSTR-3B, GSTR-1, GSTR-9, and GSTR-2A
- Issues identified in other related records
Financial and Operational Impact
The company has assessed that this penalty will not have any material impact on its financial position, operations, or other business activities. This disclosure suggests that the penalty amount, while significant in absolute terms, is manageable within the company's current financial framework.
Compliance and Next Steps
Aarti Pharmalabs Limited has committed to submitting necessary information and documents to the relevant authority as part of the compliance process. The company has fulfilled its disclosure obligations by informing both BSE and NSE about this development, and has also uploaded the information on its official website at www.aartipharmalabs.com .
The disclosure was signed by Jeevan Mondkar, Company Secretary and Legal Head, ensuring proper corporate governance protocols were followed in communicating this regulatory development to stakeholders.
Historical Stock Returns for Aarti Pharma Labs
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.84% | +3.62% | +6.32% | -10.65% | +22.08% | +169.49% |






























