Recent Updates
Recently added Catalysts
RDY Neutral Sentiment Score: 45/100

Dr. Reddy's Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, India. CIN : L85195TG1984PLC004507 Tel : +91 40 4900 2900 Fax : +91 40 4900 2999 Email : mail@drreddys.com www.drreddys.co

Key Takeaway: Dr. Reddy's Laboratories has received a tax demand order from GST authorities in Karnataka, seeking payment for wrongly availed input tax credit. The order, dated December 30, 2023, includes a total amount of Rs. 87,98,416, comprising tax, interest, and penalties. The company plans to file an appeal against the order. Despite the demand, Dr. Reddy's reports that there will be no material impact on its financials or operations.

Market Sentiment Analysis

CONCERNS & RISKS

  • The company received a tax demand order including interest and penalties.
  • The GST authorities claim the company wrongly availed and utilized input tax credit.
  • There is a significant amount involved: total tax, interest, and penalty exceeding Rs. 87 lakhs.

Full Press Release Details

National Stock Exchange of India Ltd. (Scrip Code:
BSE Limited (Scrip Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd. (Stock Code: DRREDDY)
under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
This is to inform that the Company has received an
order from GST Authority towards tax demand including interest and penalty. The details as required under Regulation 30 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 are as hereunder:
Name of the authority : GST authorities, Office of commercial tax, Bangalore Karnataka
Nature and details of the action(s) taken, initiated or order(s) passed : The Company has received order seeking demand including interest and penalty in respect of Karnataka state under the CGST Act, 2017.
Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority : Order dated December 30, 2023 was received by the authorized officials of the Company on January 5, 2024.
Details of the violation(s)/ contravention(s) committed or alleged to be committed : The authority has passed the order on the contention that the Company has wrongly availed and utilized credit of input tax.
Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible : There is no material impact on financials, operations or other activities of the Company. Tax - Rs.28,66,068/- Interest - 29,66,380. Penalty - Rs.28,66,068/-
The Company will file necessary appeal with the appellate
authority in this regard.
This is for your information and records.
For Dr. Reddy's Laboratories Limited
Company Secretary, Compliance Officer & Head-CSR

Frequently Asked Questions

What tax issue did Dr. Reddy's Laboratories face?

Dr. Reddy's Laboratories received a demand order from the GST authority related to tax credit misuse.

When did the company receive the GST order?

The GST order was received on January 5, 2024, dated December 30, 2023.

What is the total amount related to the GST order?

The total amount includes Tax: Rs. 28,66,068, Interest: Rs. 29,66,380, and Penalty: Rs. 28,66,068.

Will Dr. Reddy's Laboratories appeal the GST order?

Yes, the company plans to file an appeal with the appellate authority regarding the order.

Is there a financial impact from this GST order?

There is no material impact on the financials or operations of the company.

Last updated: Jan 5, 2024