Hyderabad, India – February 5, 2025
Aurobindo Pharma Limited has announced that it has received an order from the Additional Commissioner of Central Tax, Ranga Reddy GST Commissionerate, Hyderabad. The order pertains to alleged GST liabilities for the period between 2017-18 and 2021-22, demanding a total of ₹77.61 crore along with interest and an equivalent penalty.
Key Details of the Order
| Particulars | Details |
|---|---|
| Issuing Authority | Additional Commissioner of Central Tax, Ranga Reddy GST Commissionerate, Hyderabad |
| Nature of Order | GST demand of ₹77.61 crore plus interest and penalty of the same amount |
| Amount Paid Under Protest | ₹23.71 crore |
| ITC Reversed by Company | ₹8.78 crore |
| Date of Order Receipt | February 4, 2025 (Order dated January 28, 2025) |
| Allegations | Excess IGST refund (CIF vs FOB), non-surrender of IGST on short realization of export proceeds (July 2017 – March 2020), and non-reversal of ITC under Rule 37 of CGST Rules |
| Company's Response | Plans to file an appeal before the Appellate Authority |
| Financial Impact | No material impact on financials or operations |
Company's Stance and Next Steps
Aurobindo Pharma has clarified that the company intends to challenge the order before the appropriate Appellate Authority. The company has already paid ₹23.71 crore under protest and reversed Input Tax Credit (ITC) worth ₹8.78 crore.Despite the substantial demand, Aurobindo Pharma has assured investors that there will be no material impact on its financials or operations due to this order. The company remains committed to addressing regulatory concerns while ensuring compliance with tax laws.