Dr. Reddy's Laboratories has received five separate GST orders imposing penalties totaling ₹8.38 crores for alleged tax violations spanning financial years 2018-19 to 2022-23. According to the company's regulatory disclosure, the Joint Commissioner, Office of Principal Commissioner of Central Tax, Visakhapatnam issued all orders on December 31, 2025, which were received by the pharmaceutical company on the same date. The orders allege that Dr. Reddy's Laboratories availed excess input tax credit during the specified period under the APGST Act 2017.
The GST penalties vary significantly across the five financial years under scrutiny. As reported in the company's disclosure, FY 2020-21 attracted the highest penalty of ₹3.53 crores, while FY 2019-20 received the lowest penalty of ₹80.41 lakhs. The complete breakdown shows FY 2018-19 with ₹1.89 crores, FY 2021-22 with ₹1.45 crores, and FY 2022-23 with ₹70.87 lakhs in penalties. The total penalty amount across all five years sums to ₹8,38,57,057.
According to the regulatory filing, Dr. Reddy's Laboratories has evaluated the orders and concluded there is no material impact on the company's financials, operations, or other activities. The company has indicated it will evaluate filing the necessary appeal with the appellate authority regarding these GST orders. Company Secretary, Compliance Officer & Head-CSR K Randhir Singh signed the regulatory filing on behalf of the pharmaceutical company.
The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 on January 1, 2026. As reported in the filing, the company provided comprehensive details about the nature of violations, receipt dates of orders, and financial implications. The GST Authority's orders seek demand including interest and levy penalties, though Dr. Reddy's Laboratories maintains its position that there will be no material adverse impact on its business operations.
