Aurobindo Pharma Faces ₹7.05 Crore GST Demand Over Alleged Excess ITC Claims
Aurobindo Pharma reported receiving a Rs. 7.05 crore GST demand for alleged excess ITC claims based on mismatches with GSTR-2A and non-filer supplier data for FY 2019–20
Aurobindo Pharma Ltd. has reported that it has received an order from the Appellate Joint Commissioner (ST), Punjagutta, Hyderabad, demanding the reversal of input tax credit (ITC) worth Rs. 3.74 crore along with Rs. 2.93 crore in interest and an additional penalty of Rs. 37.51 lakh. The total demand raised against the company stands at Rs. 7.05 crore for the financial year...
Aurobindo Pharma Ltd. has reported that it has received an order from the Appellate Joint Commissioner (ST), Punjagutta, Hyderabad, demanding the reversal of input tax credit (ITC) worth Rs. 3.74 crore along with Rs. 2.93 crore in interest and an additional penalty of Rs. 37.51 lakh. The total demand raised against the company stands at Rs. 7.05 crore for the financial year 2019–20.
The company had earlier challenged a previous order issued by the Deputy Commissioner, Punjagutta GST Division, by filing an appeal before the appellate authority. In its latest ruling, the appellate authority has rejected the company’s appeal and upheld the tax demand, citing discrepancies in the ITC claimed.
According to the order, the demand arises from the alleged excess claim of ITC when compared to GSTR-2A (auto-populated supplier data) and ITC claimed on supplies from vendors who did not file their GSTR-3B returns. The authorities argue that Aurobindo Pharma availed ITC on such transactions without proper matching and verification.
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In its statement, Aurobindo Pharma has denied any wrongdoing and clarified that it plans to file a further appeal before the GST Appellate Tribunal (GSTAT). The company explained that the disputed credit is part of a reconciliation mismatch, a widespread issue in the initial years of GST implementation, where supplier compliance affects the buyer’s ability to claim credit.
The company further stated that the order does not materially impact its financials or ongoing operations,and it continues to comply with all statutory requirements.
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About Aurobindo Pharma
Aurobindo Pharma Limited is one of India’s leading pharmaceutical manufacturing companies, headquartered in Hyderabad, Telangana. Founded in 1986, the company has grown into a globally recognized player in the formulation and active pharmaceutical ingredient (API) segments, with a strong footprint across over 150 countries.
Aurobindo Pharma has a broad portfolio of over 300 formulations and more than 150 APIs, supported by its highly regulated manufacturing facilities, many of which are approved by global agencies such as the US FDA, UK MHRA, and WHO-GMP.
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