REGULATORY · INDIA
Appellate authority confirms Aurobindo Pharma ₹155cr GST demand
Change
The Principal Commissioner of Customs and Central Tax (Appeals I), Hyderabad confirmed orders imposing GST, interest and a matching penalty totaling more than ₹155 crore against Aurobindo Pharma.
Why it matters
The confirmed demand comprises a GST liability of ₹77,61,35,242, interest, and a matching penalty of ₹77,61,35,242, totaling more than ₹155 crore. Aurobindo Pharma has paid ₹23,71,71,782 under protest. The company reversed input tax credit (ITC) of ₹8,78,23,385, which has been accepted by tax authorities. The Principal Commissioner (Appeals I), Hyderabad confirmed orders issued by the Additional Commissioner of Central Tax, Ranga Reddy GST Commissionerate. Aurobindo Pharma intends to file an appeal in the Goods and Services Tax Appellate Tribunal (GSTAT).
Implications
- • A consolidated GST demand of ₹77,61,35,242 and an equal penalty of ₹77,61,35,242 is recorded against the company.
- • A payment of ₹23,71,71,782 is recorded as paid under protest.
- • Reversal of input tax credit amounting to ₹8,78,23,385 is recorded and accepted by authorities.
- • Progression to the Goods and Services Tax Appellate Tribunal (GSTAT) is the next formal adjudicatory step noted by the company.
Who is affected
- • Aurobindo Pharma finance and tax compliance teams
- • Company legal and corporate affairs counsel handling appeals
- • GST adjudication officers at Ranga Reddy Commissionerate and Principal Commissioner’s office
- • Goods and Services Tax Appellate Tribunal (GSTAT) adjudicators
What to watch
- • Filing of the appeal in the Goods and Services Tax Appellate Tribunal (GSTAT)
Source
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