Divis Labs Faces Rs 82 Crore GST Demand

17 Nov 2023 , 09:42 AM

Divis Labs discloses receipt of a Goods and Service Tax (GST) demand notice amounting to Rs 82 crore, issued by the GST Commissionerate in Hyderabad, involving an Integrated Goods and Services Tax (IGST) demand of Rs 82,04,24,880, along with applicable interest and penalty.

The company, based in Hyderabad, states that it has assessed the merits of the case and intends to file an appeal with the Appellate Authority within the specified time frame under the GST Law.

Divis Labs expresses optimism about a favorable outcome from the appeal and believes the order is unlikely to have a significant financial impact on the company. The notice revolves around the recovery of IGST refund granted under Rule 96 of CGST Rules, 2017, allegedly claimed erroneously in accordance with the provisions of the GST Act, 2017.

In the earlier financial quarter (July-September), Divi’s Laboratories reported a 29.50% YoY decline in consolidated net profit to Rs 348 crore, falling short of expectations. The company had recorded a profit of Rs 493.60 crore in the corresponding period the previous year.

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