Dr. Reddy's Laboratories (NYSE:RDY) has disclosed receiving tax demand orders including interest and penalty from GST authorities in Tamil Nadu and Odisha.
The orders, dated April 29 and April 30, 2024, accuse the pharmaceutical giant of wrongly availing credit of input tax for the fiscal year 2018-19.
Despite the penalties imposed—Rs. 5,20,076 in Tamil Nadu and Rs. 2,75,331 in Odisha—the company assesses that these will not materially impact its financials, operations, or other activities.
In response to the orders, Dr. Reddy's has announced plans to appeal with the respective appellate authorities.