GSK Pharma Faces ₹18.1 Million Tax Demand, Including Fresh ₹2.6 Million Penalty

GlaxoSmithKline Pharmaceuticals Ltd (GSK Pharma), the Indian arm of global healthcare major GSK plc, has received a tax demand totaling ₹18.1 million from Indian authorities, including an additional ₹2.6 million levied as penalty and interest. The demand pertains to assessments under the Income Tax Act and reflects ongoing scrutiny of corporate tax compliance across the pharmaceutical sector.

 

Key Highlights

Total tax demand: ₹18.1 million, including ₹2.6 million in penalty and interest

 

Issued by Indian tax authorities under provisions of the Income Tax Act

 

GSK Pharma has stated its intent to evaluate legal options and may contest the demand

 

The company has maintained that the demand will not materially impact its financial position

 

The additional ₹2.6 million demand was raised following a reassessment of prior filings, suggesting discrepancies or interpretational differences in tax treatment. While the company has not disclosed the specific assessment year or nature of the dispute, such demands are not uncommon in the pharmaceutical industry, where transfer pricing, R&D credits, and marketing expenses often attract regulatory attention.

 

GSK Pharma, which reported a 45.76 percent year-on-year rise in Q4 profit and maintains a market capitalization of over ₹34,000 crore, is expected to absorb the impact without disruption to its operations or investor outlook. The company continues to focus on its core therapeutic areas, including anti-infectives, dermatology, and respiratory care.

 

Industry analysts view the development as routine and unlikely to affect GSK’s long-term fundamentals, especially given its strong cash flows and conservative accounting practices.

 

Sources: Livemint Q4 Results Coverage, Business Standard Company Update