GST Demand Notice of Rs. 82 Crore send to Divis Labs

The Hyderabad based pharmaceutical company Divis Labs informed exchanges that it had received a GST (goods and service tax) demand notice totaling Rs. 82 crore.

The GST Commissionerate in Hyderabad sent out the notice, which included a demand for IGST of Rs. 82,04,24,880 as well as the appropriate interest and penalty of Rs. 82,04,24,880.

Divis Labs stated that it has assessed the case’s merits and determined to file the appeal with the Appellate Authority within the GST Law’s allotted time frame. The statement went on to say that the company hopes for a positive outcome and that it won’t be significantly impacted financially by the aforementioned order.

The order concerns the recovery of an alleged incorrect claim for an IGST refund made under Rule 96 of the CGST Rules, 2017 in accordance with the provisions of the GST Act, 2017 (the “GST Law”).

With a 0.28 percent increase from the previous close, the stock was trading flat at Rs. 3,546.80 on the NSE at 11:47 am.

Divi’s Laboratories had previously reported a consolidated net profit for the July–September quarter of the current financial year that was 29.50 percent below projections year over year (YoY) at Rs. 348 crore. For the same period last year, the company reported a profit of Rs. 493.60 crore.