Panacea Biotec gets Rs 5.75 crore demand from GST authority in Mumbai

New Delhi: Vaccines maker Panacea Biotec Ltd on Tuesday said it has received a demand of nearly Rs 5.75 crore from GST authority in Mumbai on the sale of its leasehold land and building in Navi Mumbai.

The company has received a demand order dated August 19, 2024, from the office of the Assistant Commissioner of State Tax, Mumbai raising a demand of Rs 5,74,53,146 towards the balance amount of GST, including interest and penalty, on the sale of leasehold land and building in Navi Mumbai, Panacea Biotec said in a regulatory filing.

The order has alleged that the transaction is a sub-lease transaction, it added.

The company had earlier deposited an amount of Rs 3,14,17,862 under protest in April 2024 and has also filed a writ petition before the Bombay High Court in this regard, Panacea Biotec said.

Based on its assessment, the company said the "demand is not maintainable" and it is taking all necessary steps, including evaluating the option of filing an appeal against the demand, it said, adding it does not envisage any relevant impact on its financial, operation or other activities.