Bayer Cropscience falls amid on Rs. 1.7 crore GST demand

Bayer Cropscience Limited shares fell 1% to Rs 5,300 in morning trade on November 21 after the business received a Rs. 1.7 crore penalty order from the Central Goods and Service Tax, Jaipur.

“The order relates to transitional credit that the company claimed during the transition from pre-GST regime to GST regime,” Bayer stated in an exchange filing on November 20.

“The company will be filing appeals as it believes that it has strong grounds to challenge the orders” .

This is the company’s second such notification in as many weeks. Bayer announced last week that it has received orders from the CGST and Central Excise, as well as the Commissionerates of Indore and Kolkata.

The authorities levied a Rs. 1.5 crore fine and an extra penalty of Rs. 3.8 crore, for a total of Rs. 5.3 crore.

This, like the previous order, was linked to transitional credit, which was claimed during the transition from the pre-GST regime to the GST regime.

Bayer Cropscience recorded standalone net sales of Rs. 1,617.20 crore in the second quarter, up 11.3 percent from the previous year. Its quarterly net profit in September 2023 was Rs. 222.90 crore, up 37 percent from Rs. 162.60 crore in Q2FY23.

The stock was trading at Rs. 5,311.45 at 9:47 a.m., down 0.78 percent from the previous close.