Biocon faces tax demand from Karnataka authorities

Biocon Limited announced on September 25, 2025, that it has received a show cause notice from the Office of the Deputy Commissioner of Commercial Taxes, Government of Karnataka. The notice proposes a total demand of INR 81,38,513 in tax, INR 1,12,82,633 in interest, and INR 8,13,851 in penalties, primarily for the financial year 2021-22.

The notice details several discrepancies, including proposed interest demands on credit note related turnover wrongly reduced from taxable turnover (INR 92,772) and short declaration of outward supplies (INR 37,89,422). It also highlights proposed tax, interest, and penalty for non-payment of tax on Corporate Guarantee (INR 1,11,31,848) and input tax credit mismatch between monthly returns and supplier reports (INR 34,75,144).

Biocon stated that it is in the process of taking appropriate actions to deal with the show cause notice. The company believes there is no material impact on its financials, operations, or other activities, with the impact limited to the extent of the final liability determined, along with any interest and penalty.