Dr Reddy’s gets Rs 74.22 crore tax demand with penalty from GST authority.
Pharma major Dr Reddy’s Laboratories Ltd on Tuesday said it has received a tax demand with penalty totalling more than Rs 74.22 crore from GST authority for wrongly availing of credit of input tax.
In a regulatory filing, the company said it has received an order seeking demand, including interest and penalty, from the Additional Commissioner of Central Tax, Hyderabad GST Commissionerate.
The authority has passed the order on the contention that the company has wrongly availed of input tax credit, or not reversed the input tax credit under provisions of CGST/TGST/IGST Act, 2017, it added.
The tax amount is Rs 67,47,37,495, while interest will be as applicable rates on tax demand, the company said, adding that the penalty is Rs 6,74,73,752.
“The company will file necessary appeal with the appellate authority in this regard,” Dr Reddy’s said. It further said, “Based on our evaluation, there is no material impact on the financials, operations, or other activities of the company.”
Source from: https://www.zeebiz.com/companies/news-dr-reddys-gets-rs-7422-crore-tax-demand-with-penalty-from-gst-authority-279927