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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 Deputy Commissioner of State Tax in Maharashtra concerning the financial year 2019-20. The order alleges that the company excessively availed input tax credit (ITC) and imposes a penalty of Rs. 3,05,386. While the company has indicated that it anticipates no material impact on its financials or operations, it plans to consider filing an appeal against the order. The announcement serves as a formal disclosure under the regulations set by the SEBI.

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CONCERNS & RISKS

  • Dr. Reddy's Laboratories received a tax demand order from the GST authority.
  • The company is facing a penalty of Rs. 3,05,386 for excess availed ITC in the year 2019-20.
  • The matter could require legal appeal, indicating potential ongoing complications.

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)
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, Bhiwandi, Maharashtra.
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 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 August 14, 2024 was received by the Company on August 14, 2024.
Details of the violation(s)/ contravention(s) committed or alleged to be committed : The authority has passed the order for the year 2019-20 on the contention that the Company has excess availed of ITC.
Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible : The above order levies a penalty of Rs. 3,05,386/-. Based on our evaluation, there is no material impact on the financials, operations, or other activities of the Company
The Company will evaluate filing 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 order did Dr. Reddy's Laboratories receive?

The company received a tax demand order from the GST Authority.

What is the penalty amount levied on Dr. Reddy's Laboratories?

The penalty amount is Rs. 3,05,386.

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

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

When was the order received by the company?

The order was received on August 14, 2024.

Will the company file an appeal regarding the order?

Yes, the company plans to evaluate filing an appeal.

Last updated: Aug 14, 2024