Biocon Slapped With Rs 1.85 Crore GST Demand, Penalty Over Tax Discrepancies
Bengaluru: Biocon Limited has received an Order-in-Original (DRC-07) from the Office of the Assistant Commissioner (ST), Atchuthapuram Circle, Visakhapatnam-2, confirming a Goods and Services Tax (GST) demand of Rs 1,85,28,762, along with interest of Rs 1,17,59,033 and a penalty of Rs 18,52,476 for the financial year 2022-23.
The company received the communication on October 9. The order was issued by the Assistant Commissioner (ST), Atchuthapuram Circle, Visakhapatnam-2, Lankelapalem, Anakapalli district, Andhra Pradesh. The communication was received in the form of an Order-in-Original (DRC-07).
According to the order, the GST demand relates to three key issues identified by the authority. These include non-submission of Special Economic Zone (SEZ) endorsement documents for zero-rated SEZ supplies, reversal of input tax under temporary reversal instead of permanent reversal, and improper claim of Input Service Distribution (ISD) credits.
The proceedings pertain to Financial Year 2022-23. The order confirms the tax demand, interest and penalty arising from the issues identified by the tax authority. The penalty imposed under the order amounts to Rs 18,52,476.
Biocon has stated that the order is not expected to have a material impact on its financials, operations or other activities. According to the company's disclosure, the financial impact will be limited to the extent of the final liability that may ultimately be ascertained, along with applicable interest and penalty, if any.
The order does not impose any restriction or sanction on Biocon apart from the penalty specified in the communication. The company has indicated that it intends to take appropriate action in response to the order.
Biocon Limited, headquartered at Electronic City, Bengaluru, is a biopharmaceutical company established in India. The company stated that it intends to pursue appropriate remedies, including filing a Rectification Application and/or Appeal against the communication. No other relevant information was reported in the disclosure.
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