In another drive to curb GST leakages across several sectors, the Directorate General of GST Intelligence (DGGI) is understood to have registered 41 cases against pharma majors across the country in FY24, sources told CNBC-TV18.

DGGI claims that pharma companies have evaded GST primarily on account of "brand transfer sales, claiming fake ITC on expired drugs, taking fake ITC for business support services, and non-payment of GST under the Reverse Charge Mechanism," sources added.

Sources say that in the last fiscal year, "pharma companies voluntarily paid approximately ₹450 crore after being served pre-show cause notices, and further investigations are still underway."

A close glance at the data, sources claimed, shows that "the maximum number of cases were registered by DGGI’s Mumbai zone, with about 29 of the total 41 cases."

Additionally, sources further added that "of the list, Glenmark Pharmaceuticals paid the highest amount of GST due, spread over two cases—approximately ₹130 crore and ₹40 crore—followed by Vicco Laboratories, again in two separate cases, one of about ₹95 crore and the other of about ₹20 crore. Third on the list is Zydus Healthcare and Zydus Lifesciences, which paid approximately ₹45 crore and ₹12 crore."

Other companies against whom cases were registered, and who are part of the 41, include Sun Pharma Laboratories Ltd, Sun Pharma Ltd, Biocon Ltd, Pfizer Ltd, Biocon Biologics, Wockhardt Ltd, Torrent Pharmaceuticals Ltd, Aurobindo Pharma Ltd, Cipla Ltd, Hetero Healthcare, Mylan Pharmaceuticals, Alembic Pharmaceuticals, Lupin Ltd, etc.

Meanwhile, CNBC-TV18 has reached out to these companies for comments. Glenmark Pharmaceuticals did not comment on the story.

Biocon, responding to the story, said: “We were informed by DGGI Mumbai about certain classifications of sales promotional expenses as not being eligible for GST credits. Accordingly, Biocon and Biocon Biologics have voluntarily reversed the respective GST credits claimed by them under this head. The GST credit amount adjusted under this category is for the period FY 2017-18 to FY 2022-23. There has been no GST evasion by the company. We are fully committed to compliance and the highest standards of corporate governance.”

K. Baheti, Group CFO of Alembic Pharma, reacting to the story, added: "We were only issued summons to clarify certain points and submit details. The issue largely concerned legal interpretation on the admissibility of input credit on certain routine operational business practices. The GST department had a different view. Post discussions, there was a reversal of ITC credit from our available credits. Subsequently, there were no further queries or show cause notices. To clarify, no case was registered against us in this regard.”

For others, CNBC-TV18 has reached out and is awaiting responses.