Aurobindo Pharma confirms ₹4.60 crore GST demand for FY21
- Total disputed amount stands at ₹4.60 crore for FY21
- Principal tax demand of ₹2.56 crore linked to excess ITC claims
- Interest of ₹1.78 crore and penalty of ₹0.26 crore also confirmed
- Company plans to appeal before the GST Appellate Tribunal
*this image is generated using AI for illustrative purposes only.
Aurobindo Pharma confirmed a total disputed amount of ₹4.60 crore following an order from the Appellate Joint Commissioner (ST) in Hyderabad regarding FY21 tax liabilities.
The order, received on September 28, 2026, upholds a previous decision by the Original Authority concerning the reversal of alleged excess Input Tax Credit (ITC) claims. The total liability comprises the principal tax demand, interest, and penalty amounts specified in the regulatory filing.
Breakdown of the GST Demand
The Appellate Joint Commissioner (ST), Malkajgiri Division, Telangana, passed the order under the Central Goods and Services Tax Act, 2017, and the TGST Act 2017. The demand relates to the financial year 2020-21.
| Component | Amount |
|---|---|
| Principal Tax Demand | ₹2.56 crore |
| Interest | ₹1.78 crore |
| Penalty | ₹0.26 crore |
| Total Disputed Amount | ₹4.60 crore |
The principal tax demand of ₹2.56 crore is split into CGST of ₹81.04 lakh, SGST of ₹81.04 lakh, and IGST of ₹94.37 lakh. The interest component stands at ₹1.78 crore, while the penalty imposed is ₹25.65 lakh.
Nature of the Alleged Violation
The authority upheld the original order dated February 28, 2025, which alleged that the company claimed excess ITC in GSTR 3B compared to GSTR 2A. Specifically, the discrepancy was noted in Table 8D of GSTR 9 for FY21. The initial receipt of the original order was intimated to stock exchanges on March 1, 2025.
Company Response and Impact
Aurobindo Pharma stated that the order has no material impact on its financials or operations. The company intends to file an appeal before the GST Appellate Tribunal against the present order. The appeal will challenge the confirmation of the demand, interest, and penalty as detailed in the filing.
Historical Stock Returns for Aurobindo Pharma
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.01% | -0.92% | +3.18% | +29.18% | +55.75% | +134.15% |
How might the pending appeal to the GST Appellate Tribunal influence Aurobindo Pharma's short-term liquidity planning and working capital requirements?
Are there indications that Indian tax authorities are intensifying scrutiny on Input Tax Credit discrepancies for other major pharmaceutical companies in the current fiscal year?
Could a potential adverse ruling at the tribunal stage trigger broader compliance audits across Aurobindo Pharma's other operational jurisdictions in India?
16
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
