Divi’s Laboratories, on 16 November, received a demand notice of Rs 82 crore from the goods and service tax (GST) Commissionerate.
The notice was issued by the GST Commissionerate in Hyderabad, which raised an IGST demand of Rs 82.04 crore along with applicable interest and penalty.
In its regulatory filing, the company said that it had evaluated the merits of the case and decided to file an appeal with the Appellate Authority within the time limit prescribed under the GST Law. The company is also hopeful of a favourable outcome and does not expect to have any material financial impact on the company.
The order is regarding the recovery of refund of IGST that was granted under Rule 96 of CGST Rules, 2017, alleged to have been claimed erroneously in terms of the provisions of the GST Act, 2017.
In its quarterly earnings for the July-September quarter, the company reported a 29.4% year-on-year (YoY) decline in its net profit to Rs 348 crore during the quarter.
However, the revenue of the company saw a 2.9% YoY increase to Rs 1,909 crore for the quarter. The EBITDA of the company was down by 28.7% YoY to Rs 443 crore during the quarter, while the EBITDA margin contracted to 23.2% from 33.47% reported in Q2FY23.