• Notification Date: 21-11-2023
• Notification No: N/A

Divi's Labs receives Rs 82-crore GST Demand Notice

Divis Labs has received a goods and service tax (GST) demand notice of Rs 82 crore demand, the Hyderabad-based pharma company told exchanges on November 16. 

The notice, issued by the GST Commissionerate in Hyderabad, raised an IGST demand of Rs 82,04,24,880 along with applicable interest and penalty of Rs 82,04,24,880. 

Divis labs said it has evaluated the merits of the case and decided to file the appeal with the Appellate Authority within time-limit prescribed under the GST Law. It added that the company is hopeful of a favourable outcome thereof and does not expect the said order to have any material financial impact on the company. 

The order pertains to recovery of refund of IGST granted under Rule 96 of CGST Rules, 2017 alleged to have been claimed erroneously in terms of the provisions of the GST Act, 2017 (‘GST Law’). 

At 11.47 am, the stock was trading flat at Rs 3,546.80 on the NSE, up 0.28 percent from the previous close. 

Earlier Divi's Laboratories had reported a 29.50 percent year-on-year (YoY) decline in its consolidated net profit to Rs 348 crore for the July-September quarter of the current financial year, missing estimates. The company reported a profit of Rs 493.60 crore in the same period last year.