Updated – May 03, 2024 at 05:35 PM
Hyderabad: Aurobindo Pharma Ltd. has been hit with a significant tax demand from the GST authority, amounting to over ₹13 crore. This demand includes interest and penalties related to an ineligible input tax credit (ITC) claim.
Tax Order Details
The Deputy Commissioner (ST) STU-1 of GST, Punjagutta Division, Hyderabad, under the Commercial Taxes Department of Telangana, issued the order under the Central Goods and Services Tax Act, 2017, and the TGST Act, 2017 for the financial year 2018-19.
The breakdown of the tax demand is as follows:
- Reversal of ITC and Payment of GST: ₹6,54,50,645
- Interest: ₹5,92,20,900
- Penalty: ₹65,51,354
Aurobindo Pharma’s Response
In a regulatory filing, Aurobindo Pharma stated that it plans to appeal the order. The company emphasized that this tax demand will not materially impact its financial position or operational performance.
Looking Ahead
The pharmaceutical giant is preparing to present its case before the appellate authority. While this situation underscores the complexities of tax regulations, Aurobindo Pharma remains confident in navigating this challenge without significant disruption to its business.
Stay updated on developments regarding Aurobindo Pharma’s tax appeal and its implications on the company’s financial health.