Mankind Pharma has received a tax penalty order of ₹15.32 crore from the tax authorities, adding to the series of recent tax and GST-related demands against the company. The pharma major contends that such orders are not legally tenable and is expected to challenge the latest penalty, while maintaining no material impact on operations.
Tax penalty details
Mankind Pharma has been served a tax penalty of ₹153.2 million (₹15.32 crore) by the tax department, linked to past assessment years and prior audit observations.
The order follows earlier income-tax demands aggregating over ₹341.86 crore and a separate GST-related penalty of ₹2.27 crore imposed by Kolkata authorities.
Company’s stance and next steps
The company has consistently argued that recent additional tax demands are not sustainable in law and that it has strong factual and legal grounds to contest them through the appellate process.
Management has indicated that these tax exposures are not expected to have a material impact on its financial position or day-to-day business operations, although they add to ongoing litigation risk.
Key highlights
Tax penalty amount: ₹15.32 crore (₹153.2 million).
Nature: Additional tax liability arising from assessment adjustments and disallowance of certain deductions/expenses.
Recent history:
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₹111.68 crore income-tax demand for AY 2021-22.
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₹341.86 crore additional tax demand (including interest) from Income Tax authority in May 2025.
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₹2.27 crore GST penalty from Kolkata South CGST & CX over alleged return mismatches (FY18–FY22).
Company view: Demands “not tenable in law”; plans to appeal and does not foresee material financial/operational impact.
Sources: Regulatory filings by Mankind Pharma Ltd; Economic Times (Pharma & CFO verticals); Business Standard; NDTV Profit; Upstox; India Infoline; Medical Dialogues.