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 the GST Authority, including penalties for allegedly wrongfully availed tax credits. The order, received on January 16, 2024, states the company must pay Rs.2,426 in tax and Rs.2,258 in interest, along with a Rs.20,000 penalty. The company asserts that there is no material impact on its financials or operations and plans to file an appeal with the appropriate authority.

Market Sentiment Analysis

CONCERNS & RISKS

  • The company received a tax demand including interest and penalty.
  • The order was based on the contention that the company wrongly availed credit of input tax.
  • A penalty of Rs.20,000 was imposed, which may affect future operations.

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 : Deputy Commissioner of State Tax, Mumbai-LTU-506, Mumbai-LTU-1, Mazgaon, Mumbai
Nature and details of the action(s) taken, initiated or order(s) passed : The Company has received order seeking demand including interest and penalty under section 73(9) of the MGST Act/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 January 16, 2024 was received by the authorized officials of the Company on January 16, 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 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.2,426/- Interest - Rs.2,258/- Penalty - Rs.20,000/-
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 did Dr. Reddy's Laboratories receive from the GST Authority?

The company received a tax demand order including interest and penalty.

Who issued the order to Dr. Reddy's Laboratories?

The order was issued by the Deputy Commissioner of State Tax, Mumbai.

What is the date of the order received by the company?

The order was received on January 16, 2024.

What is the total amount due from Dr. Reddy's Laboratories?

The total due includes tax, interest, and penalty, totaling Rs.24,684.

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

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

Last updated: Jan 16, 2024