Mankind Pharma Faces INR 83 Lakh GST Penalty, Plans to Appeal

Mankind Pharma , a prominent player in the Indian pharmaceutical industry, has recently received a Goods and Services Tax (GST) order imposing a penalty of INR 83,00,790 for the financial year 2021-22. The order, issued by the office of the Commissioner Goods and Service Tax, Haryana, alleges disallowance of Input Tax Credit under Section 16(4) of the Central Goods and Services Tax (CGST) Act.

Key Details of the GST Order

Aspect	Details
Issuing Authority	Additional Commissioner, CGST, Gurugram, Haryana
Order Type	Order-in-Original under Section 73 of the CGST Act
Financial Year	2021-22
Penalty Amount	INR 83,00,790
Date of Order Receipt	November 14, 2025
Alleged Violation	Disallowance of Input Tax Credit under Section 16(4) of the CGST Act

Company's Response

Mankind Pharma has taken a firm stance against the order, describing it as "arbitrary and unjustified." The company plans to file an appeal with the appropriate appellate authority to contest the penalty. In its official statement, Mankind Pharma emphasized that this order would have no material impact on its financials, operations, or other activities.

Implications and Next Steps

Appeal Process: Mankind Pharma is preparing to file a necessary appeal with the appellate authority to challenge the GST order.
Financial Impact: The company maintains that there will be no significant effect on its financial position or operations due to this order.
Regulatory Compliance: As per SEBI regulations, Mankind Pharma has duly informed the stock exchanges about this development, adhering to the disclosure requirements under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements.

While the GST order presents a regulatory challenge for Mankind Pharma, the company's confident response and planned appeal suggest a strong belief in its tax compliance practices. Investors and market watchers will likely keep a close eye on the progress of this case and its potential implications for the pharmaceutical sector's tax landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.17%	-2.07%	-9.45%	-13.30%	-13.65%	+56.30%

Mankind Pharma , a prominent player in the Indian pharmaceutical industry, has recently made a significant move in its financial strategy. The company has withdrawn the credit rating for its ₹3,500 crore Commercial Paper instrument, which previously held an (ICRA)A1+ rating. This decision was made at the company's request to ICRA Limited, a leading credit rating agency in India.

Credit Rating Withdrawal Details

The withdrawal of the credit rating for the ₹3,500 crore Commercial Paper comes as part of Mankind Pharma's financial management strategy. While the reasons for this withdrawal have not been explicitly stated, it's important to note that such actions are often part of a company's broader financial planning and can be influenced by various factors, including changes in capital structure or funding requirements.

Remaining Credit Ratings

Despite this withdrawal, Mankind Pharma maintains several other outstanding credit ratings, which reflect the company's financial strength and creditworthiness. These ratings are as follows:

Instrument	Amount (₹ crore)	Rating	Status
Non-Convertible Debentures	5,000.00	(ICRA)AA+/Stable	Outstanding
Commercial Paper	1,500.00	(ICRA)A1+	Outstanding
Long-term/Short-term fund-based limits	1,250.00	(ICRA)AA+ (Stable)/(ICRA)A1+	Outstanding

The maintenance of these high ratings, particularly the (ICRA)AA+/Stable rating for its ₹5,000 crore Non-Convertible Debentures and the (ICRA)A1+ rating for its ₹1,500 crore Commercial Paper, indicates that Mankind Pharma continues to enjoy a strong credit profile in the market.

Implications and Outlook

The withdrawal of the credit rating for the ₹3,500 crore Commercial Paper does not necessarily imply any negative impact on Mankind Pharma's financial health. Companies often adjust their credit ratings based on their current financial strategies and market conditions.

Investors and stakeholders should note that Mankind Pharma's other outstanding ratings remain strong, suggesting that the company maintains a robust financial position. The (ICRA)AA+/Stable and (ICRA)A1+ ratings indicate a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.

As the pharmaceutical sector continues to evolve, Mankind Pharma's financial decisions will play a crucial role in its growth strategy and market position. Stakeholders are advised to monitor any further announcements from the company for a comprehensive understanding of its financial outlook.

Upcoming Investor Conference

In related news, Mankind Pharma has announced its participation in the upcoming Avendus Spark INDX 2025 investor conference, scheduled for November 18, 2025, in Mumbai. This event, titled "The New Code for India's Growth," will provide an opportunity for investors to engage with the company through one-on-one and group meetings.

This participation underscores Mankind Pharma's commitment to maintaining transparent communication with its investors and the financial community at large. However, the company has emphasized that no unpublished price-sensitive information will be shared during this conference.

As Mankind Pharma navigates these financial developments, the market will be keenly watching for any impacts on the company's operations and future growth prospects in the competitive pharmaceutical landscape.