Dr. Reddy’s Faced with Minor GST Penalty

Dr Reddy’s Laboratories (RDY) has released an update.

Dr. Reddy’s Laboratories Ltd. has informed the stock exchanges of a tax demand including interest and penalty issued by the GST Authority, which contends that the company incorrectly availed of excess Input Tax Credit for the fiscal year 2019-20. The penalty amount imposed is Rs. 33,736, but the company assesses that this will not materially impact its financials or operations. Dr. Reddy’s is considering an appeal against the order.

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