Aurobindo Pharma Limited has disclosed that the Principal Commissioner of Customs and Central Tax (Appeals I), Hyderabad, has confirmed a GST demand of Rs. 77,61,35,242/- along with an equal penalty amount. The pharmaceutical company received the appellate order on March 12, 2026, and informed stock exchanges on March 13, 2026, in compliance with SEBI regulations.

GST Demand Details

The confirmed demand stems from three primary allegations against the company during the period from July 1, 2017, to March 23, 2020. The tax authorities have alleged that Aurobindo Pharma availed excess IGST refunds based on CIF versus FOB valuations, failed to surrender IGST refunds on account of short realization of export proceeds under Rule 96 of CGST Rules, and did not reverse Input Tax Credit as required under Rule 37 of CGST Rules.

Appellate Authority Decision

The Principal Commissioner of Customs and Central Tax (Appeals I), Hyderabad, partially allowed the company's appeal by dropping the demand for interest on ITC reversed under Rule 37 of CGST Rules. However, the appellate authority upheld the original demand and penalty that were confirmed by the Additional Commissioner of Central Tax, Ranga Reddy GST Commissionerate, Hyderabad, in its order dated January 28, 2025.

The company had previously received the original authority's order on February 4, 2025, and had duly informed the stock exchanges on February 5, 2025, maintaining transparency in its regulatory disclosures.

Company's Response and Financial Impact

Aurobindo Pharma has stated that there is no material impact on the company's financials or operations due to the confirmed order. The pharmaceutical manufacturer has already taken proactive measures by paying Rs. 23,71,71,782/- under protest and reversing ITC of Rs. 8,78,23,385/-, which has been accepted by the tax authorities.

Future Legal Action

The company has indicated its intention to file an appeal against the appellate order dated February 27, 2026, before the Goods and Services Tax Appellate Tribunal (GSTAT) within the stipulated timeframe. This represents the next level of judicial review available to challenge the confirmed GST demand and penalty.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring compliance with stock exchange notification requirements for material developments affecting listed entities.

Aurobindo Pharma has announced that APL Healthcare's Unit-IV manufacturing facility has received Voluntary Action Indicated (VAI) classification from the US Food and Drug Administration following a comprehensive inspection of the facility. The company has now received the official Establishment Inspection Report (EIR) confirming the VAI classification, and the inspection is officially closed.

FDA Inspection Details

The US FDA conducted a detailed inspection of APL Healthcare's Unit-IV facility over a ten-day period from December 8 to December 17, 2025. During this regulatory review, the inspection team identified and documented five specific issues at the manufacturing site. The facility is located at Palchur village and part of Palepalem Village Naidupeta Mandal, SPSR Nellore District, Andhra Pradesh.

VAI Classification Significance

The VAI classification indicates that while the FDA identified certain observations during the inspection, these issues do not warrant immediate regulatory action that would halt manufacturing operations. This classification allows the facility to continue its operations while the company addresses the noted concerns. The facility received a Form 483 with the five observations at the end of the inspection.

Official Confirmation and Current Status

Aurobindo Pharma has officially notified the stock exchanges about receiving the Establishment Inspection Report (EIR) classifying the facility as VAI. The inspection is now officially closed, representing a significant milestone for the facility's ongoing compliance with US FDA standards and regulations. APL Healthcare Limited is a wholly owned subsidiary of Aurobindo Pharma Limited.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, by informing both the National Stock Exchange of India Limited and BSE Limited about the FDA classification outcome.