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).

The demand raised for IGST is of Rs 82.04 crore along with applicable interest and penalty of Rs 82.04 crore, being 100% of the tax amount (IGST).

The pharma company said that 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.

The drug maker is hopeful of a favorable outcome thereof and does not expect the said order to have any material financial impact on the company.

The company reported 29.4% decline in consolidated net profit to Rs 348 crore despite of 2.91% rise in revenue from operations to Rs 1,909 crore in Q2 FY24 over Q2 FY23.

Divis Laboratories is engaged in the manufacture of active pharmaceutical ingredients, intermediates and nutraceutical ingredients.

Shares of Divi's Laboratories closed 0.22% higher at Rs 3,542.90 on the BSE.