Panacea Biotec Challenges GST Demand Over Navi Mumbai Land Sale

Panacea Biotec Ltd received a demand for nearly Rs 5.75 crore from GST authorities in Mumbai over the sale of its leasehold land and building in Navi Mumbai. The company refuted the demand, terming it non-maintainable, and may appeal the decision, asserting no significant financial impact.

On Tuesday, Panacea Biotec Ltd announced that they have received a demand for nearly Rs 5.75 crore from the GST authorities in Mumbai concerning the sale of their leasehold land and building in Navi Mumbai.

The demand order, dated August 19, 2024, from the Assistant Commissioner of State Tax, Mumbai, specifies that a balance amount of Rs 5,74,53,146, including interest and penalty, is due on the transaction, which has been classified as a sub-lease.

Panacea Biotec had earlier protested by depositing Rs 3,14,17,862 in April 2024 and filed a writ petition with the Bombay High Court. The company maintains that the demand is not maintainable and is exploring all legal options, including an appeal, while asserting no expected impact on its financial and operational activities.

(With inputs from agencies.)