Aurobindo Pharma has informed stock exchanges that the Goods & Service Tax Department has passed orders demanding recovery of refunds granted earlier to the company, as per its disclosure dated February 19, 2026 .
According to the annexure, the Additional Commissioner of Central Tax, Ranga Reddy GST Commissionerate, Hyderabad, has issued four orders under the Central Goods and Services Tax Act, 2017, alleging erroneous refund of accumulated Input Tax Credit under Rule 89 for the period September 2022 to December 2022.
The total disputed amount stands at Rs 169,83,61,326, comprising GST of Rs 84,91,80,663 and an equal penalty of Rs 84,91,80,663. The orders were received on February 18, 2026.
The dispute relates to refunds claimed by the company’s EOU Unit 3 for zero-rated supplies made without payment of tax under LUT. While refunds were earlier sanctioned after verification, the department later challenged the sanction orders before the appellate authority, which ruled in favour of the GST department in 2023. The company has filed writ petitions before the Telangana High Court and has also challenged the validity of Rule 89(4)(C).
The company stated it will file an appeal before the Commissioner of Central Tax (Appeals), Hyderabad, and clarified that there is no material impact on its financials or operations due to the orders.
