GlaxoSmithKline Pharmaceuticals Limited has informed stock exchanges about receiving a significant GST demand order from West Bengal State GST authorities. The pharmaceutical company disclosed this development under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

GST Demand Order Details

The demand order, amounting to ₹89.59 lakh, was issued by the Joint Commissioner, State Tax, Large Taxpayer Unit, West Bengal State GST. The order pertains to credit mismatch issues between the company's GST returns and the details reported by its suppliers.

Nature of GST Issues

The GST authorities have raised the demand in relation to GST credit-related issues. The primary concern involves a major credit mismatch between the company's GST returns and the details reported by its suppliers. This type of discrepancy typically arises when there are differences in the input tax credit claimed by the company and the corresponding output tax reported by vendors.

Company's Response and Impact Assessment

GlaxoSmithKline Pharmaceuticals has stated that it is currently evaluating the demand order. The company plans to take appropriate action in response to the order. As of now, the company has not provided specific details on the potential impact on its financial operations.

Regulatory Compliance

The company has fulfilled its disclosure obligations by informing the stock exchanges about this development. The disclosure was made in accordance with the regulatory requirements for material events that could potentially affect stakeholder interests.

GlaxoSmithKline Pharmaceuticals' proactive disclosure demonstrates its commitment to transparency and regulatory compliance, even as it works to address the GST-related concerns raised by the West Bengal authorities.

GlaxoSmithKline Pharmaceuticals Limited has disclosed receiving a significant court decree in a legacy case that dates back over two decades. The pharmaceutical company informed stock exchanges about the development on December 18, as part of its regulatory disclosure obligations.

Court Decree Details

The Court of Small Causes, Bombay issued a decree on May 6, which the company received on November 2. The case pertains to mesne profits for office premises that were formerly used by Burroughs Wellcome (India) Limited prior to its merger with GlaxoSmithKline Pharmaceuticals.

Case Background and Timeline

The decree relates to a matter that is more than 24 years old, concerning office premises formerly occupied by Burroughs Wellcome (India) Limited before its merger with the company. GlaxoSmithKline Pharmaceuticals explained that the delayed intimation occurred because the company did not have any record of this case, making it difficult to immediately confirm whether it was attributable to them.

The total financial impact includes the original mesne profit amount of ₹87.09 lakhs plus accumulated simple interest at 9% per annum from June 2001, bringing the total demand to ₹37.19 crores.

Company Response and Next Steps

GlaxoSmithKline Pharmaceuticals has indicated that it is currently evaluating the court decree and will take appropriate actions, including filing an appeal in due course to mitigate any potential impacts. The company has assured stakeholders that it will pursue all available legal remedies to address the matter.

Regulatory Compliance

The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company filed the disclosure with both BSE Limited and The National Stock Exchange of India Limited on December 18, ensuring compliance with mandatory reporting requirements for material developments that could impact the company's operations or financial position.