Aurobindo Pharma Slapped With Rs 11 Crore GST Demand, Plans Appeal
Hyderabad: Aurobindo Pharma has been hit with a Rs 11 crore GST demand by Andhra Pradesh authorities, accusing the company of overstating its Input Tax Credit (ITC) for the financial years 2017-18 to 2019-20, along with interest.
The Additional Commissioner (ST), Appellate Authority, Vijayawada, Andhra Pradesh, has sent a notice to the drugmaker demanding the reversal of Input Tax Credit (ITC) and payment of Goods and Services Tax (GST) for the financial years 2017-18 to 2019-20. The total amount in dispute stands at Rs 11.05 crore, including the reversal of ITC amounting to Rs. 5.68 crore, interest of Rs. 4.79 crore, and a penalty of Rs. 56.86 lakh.
The order, passed under the provisions of the Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017, alleges that Aurobindo Pharma had claimed excess ITC compared to the GSTR 2A filings and made claims on supplies received from non-filers of GSTR 3B. The company intends to file an appeal before the Tribunal to challenge the decision.
In a statement, Aurobindo Pharma assured investors that the order would not have a material impact on its financials or operations. The company has disclosed the details of the order in accordance with SEBI's (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Despite the ongoing legal proceedings, the company stated that it does not expect any significant financial or operational disruption from the order. The company plans to challenge the order by filing an appeal with the Tribunal.
Aurobindo Pharma, a global pharmaceutical player based in Hyderabad, is involved in the production and distribution of generic medicines, including those for key therapeutic segments such as anti-retroviral, antibiotics, and central nervous system disorders.
