Dr Reddy's Slapped Rs 2.19 Crore GST Demand for FY20-22, Plans to Challenge Orders
Hyderabad: Dr. Reddy's Laboratories Limited has received three separate tax demand orders from the Goods and Services Tax (GST) authority for the financial years 2019-20 to 2021-22, the company informed in a regulatory filing.
The orders have been issued by the Commercial Taxes Department, Office of the Joint Commissioner (ST), Chennai Intelligence-II, under Section 74 of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017, which pertains to tax demands along with interest and penalties.
According to the company, the action has been taken on the grounds that certain supplies were considered taxable by the authorities. Consequently, penalties have been imposed across the three financial years.
The penalty for FY 2019–20 stands at ₹2,19,48,944, while ₹50,406 and ₹4,384 have been levied for FY 2020–21 and FY 2021–22, respectively.
The company stated that it received the orders on March 16, 2026. Despite the development, Dr. Reddy’s clarified that there is no material impact expected on its financials, operations, or overall business activities.
Further, the pharmaceutical major noted that it is evaluating the orders and may file an appeal before the appropriate appellate authority.
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