Aurobindo Pharma Slapped Rs 77.6 Crore GST Demand, Penalty in IGST Refund Dispute
New Delhi: Aurobindo Pharma Limited has received an order from the Principal Commissioner of Customs and Central Tax (Appeals I), Hyderabad, confirming a Goods and Services Tax (GST) demand along with penalty against the company.
The development was disclosed to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
According to the company, the appellate authority has upheld the order issued earlier by the Additional Commissioner of Central Tax, Ranga Reddy GST Commissionerate, Hyderabad. The order relates to alleged excess Integrated GST (IGST) refunds claimed by the company, non-surrender of IGST refunds due to short realization of export proceeds for exports made between July 1, 2017 and March 23, 2020, and non-reversal of input tax credit (ITC) as required under Rule 37 of the CGST Rules.
The tax demand amounts to ₹77,61,35,242 along with applicable interest, while a penalty of an equal amount of ₹77,61,35,242 has also been imposed. The company had earlier paid ₹23,71,71,782 under protest and reversed input tax credit worth ₹8,78,23,385, which was accepted by the authorities.
The order was received by the company on March 12, 2026. The appellate authority, through an order dated February 27, 2026, partly allowed the company’s appeal by dropping the demand for interest on the input tax credit reversed under Rule 37 of the CGST Rules. However, it upheld the GST demand and penalty that were confirmed by the original authority in its order dated January 28, 2025.
Aurobindo Pharma clarified that the order is not expected to have any material impact on the company’s financials or operations. The company stated that it intends to file a further appeal against the order before the Goods and Services Tax Appellate Tribunal (GSTAT) within the stipulated timeline.
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