Aurobindo Pharma has been ordered to pay a GST demand and penalty totalling ₹77.61 crore by the Principal Commissioner of Customs and Central Tax (Appeals I), Hyderabad. The order confirms previous findings by the Additional Commissioner of Central Tax, Ranga Reddy GST Commissionerate.
The case involves allegations of excess IGST refund claims and non-surrender of IGST on short realisation of export proceeds for exports made between 1 July 2017 and 23 March 2020. Aurobindo Pharma has already paid ₹23.71 crore under protest and reversed ITC worth ₹8.78 crore, which has been accepted by the authorities.
The appellate authority has partially allowed the company’s appeal by dropping the demand for interest on the reversed ITC but upheld the original demand and penalty. Despite the order, Aurobindo Pharma states there is no material impact on its financials or operations. The company plans to appeal the decision with the Goods and Services Tax Appellate Tribunal within the stipulated time.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).