Sun Pharma faces tax demand of Rs 1.11 crore

Sun Pharma received a tax demand of over Rs 1.11 crore for disallowed input tax credit. The demand includes a penalty and interest. The order was issued under the GST Act. The company clarified that the demand will not significantly impact its operations or finances.

Sun Pharmaceutical Industries Ltd on Monday said it has received a tax demand of over Rs 1.11 crore from authorities over disallowed input tax credit.

The company has received an order from the Joint Commissioner, CGST and Central Excise, passed under the GST Act, raising a demand of Rs 1,11,60,156, imposing a penalty of Rs 11,16,016 and interest as applicable, Sun Pharmaceutical Industries said in a regulatory filing.

The reason for the order is disallowed input tax credit on account of inadmissible transitional credit, it added.

''There is no material impact on financial, operation or other activities of the company,'' the filing said.