Syncom Formulations (India) Limited has received a revised GST demand and penalty notice totaling ₹1.42 crores from the GST department, following the rejection of its earlier appeal. The WHO-GMP and ISO 9001-2000 certified pharmaceutical company disclosed this development through a regulatory filing on January 3, 2026.

GST Demand Details

The GST department has raised demands under sections 74(5) and 122 of the CGST Act, 2017, with payment required by January 31, 2026. The demand stems from allegations of ineligible input tax credit (ITC) availed by the company on certain input services and blocked credits.

Timeline of Events

The company had previously filed an appeal against the initial demand, which was subsequently rejected by the authorities. Key dates in the process include:

• Notice Date: December 31, 2025
• Receipt Date: January 2, 2026
• Payment Deadline: January 31, 2026
• Previous Communication: April 5, 2025 (referenced as SYNCOM/SE/2025-26)

Regulatory Authority and Allegations

The demand has been issued by the Office of Superintendent, Range-V, Division X, Mumbai-East, CBIC, Maharashtra. The tax authorities allege that Syncom Formulations availed input tax credits on ineligible input services and blocked credits, which forms the basis for the current demand and penalty.

Company's Response Strategy

Syncom Formulations has indicated its intention to challenge the revised demand through proper legal channels. The company stated it is seeking necessary legal advice and proposes to contest the demand and penalty by filing an appeal before the appropriate appellate authority or department.

The pharmaceutical company emphasized its commitment to ensuring optimum compliance with all applicable laws while pursuing available legal remedies to address the GST demand.

Financial Impact

The total demand of ₹1.42 crores represents a significant regulatory challenge for the company. The equal split between the principal demand and penalty amount reflects the serious nature of the alleged violations under GST regulations. The company will need to manage this financial obligation while pursuing its appeal process through the designated appellate mechanisms.

Syncom Formulations (India) Limited, a player in the pharmaceutical industry, has acquired a commercial property in Mumbai for ₹51.70 crore. This acquisition marks an expansion of the company's physical assets.

Key Highlights of the Acquisition

• Property Details: The entire 3rd Floor of TradeStar building, located on Andheri-Kurla Road, Mumbai
• Seller: HDFC Bank Ltd.
• Purchase Price: ₹51.70 crore
• Nature of Transaction: The company considers this acquisition material in nature

Financial Context

To put this acquisition into perspective, let's examine Syncom Formulations' recent financial position:

The acquisition value of ₹51.70 crore represents approximately 12.5% of the company's total assets as of FY 2025.

Potential Implications

1. Asset Growth: The acquisition may boost Syncom Formulations' fixed asset base, which stood at ₹124.90 crore in FY 2025.

2. Strategic Location: The TradeStar building's location in Andheri, a business district in Mumbai, could provide Syncom Formulations with a strategic advantage in terms of business operations.

3. Financial Impact: While the company has shown strong equity growth (18.78% YoY), this investment may impact short-term liquidity.

4. Long-term Presence: This material acquisition suggests that Syncom Formulations is investing in its long-term presence in Mumbai.

As Syncom Formulations integrates this new property into its asset portfolio, stakeholders will be observing how this move affects the company's operational efficiencies and financial metrics in the upcoming periods.