Jubilant Generics Receives GST Show-Cause Notice Demanding Over ₹105 Crore

Jubilant Pharmova Ltd has informed regulatory authorities that its arm, Jubilant Generics Ltd, has received a show-cause notice from the Uttarakhand Goods and Services Tax (GST) authority. The notice demands ₹105.5 crore, which includes a penalty over the availment of a tax refund.

According to the regulatory filing, the Joint Commissioner, CGST Division, Roorkee, Uttarakhand, issued the notice. The authority has alleged that Jubilant Generics simultaneously availed of an Integrated Goods and Services Tax (IGST) refund under Rule 96 and the benefits of the Advance Authorisation Scheme in violation of established rules for the 2020-21 and 2021-22 financial years.

The Advance Authorisation Scheme is a trade mechanism that permits the duty-free import of inputs required for manufacturing export products.

The total demand outlined in the notice comprises GST (tax) amounting to ₹52.75 crore, a matching penalty of ₹52.75 crore, and unquantified interest.

In response to the regulatory communication, Jubilant Pharmova stated that it intends to contest the notice and will file its reply shortly.

In its filing, the company noted, "The show-cause notice is factually and legally incorrect, bad in law and has been issued without verifying the facts and examining the issue properly. The company has a strong case in its favour... (and) will file a detailed reply on merits before the Joint Commissioner, CGST Division, Roorkee."

The company further added that it currently anticipates no financial or operational impact stemming from the issuance of the notice.

"Regulatory notices of this scale require structured legal review and clear communication with stakeholders to manage potential uncertainty. For established businesses, having robust documentation regarding tax schemes like the Advance Authorisation Scheme is essential when facing compliance queries. Jubilant's decision to formally contest the notice through a detailed merits-based reply is a standard and necessary course of action in handling such disputes." — Dr. Shishir Gupta, Founder & CEO, StartupLanes