Aurobindo Pharma Stock Declines 1.4% After Adverse Order In ₹4.60 Crore GST Demand Case In Telangana
· Free Press Journal
While the benchmark indices were trading in green on Wednesday, the stock of Aurobindo Pharma declined up to 1.4% after an adverse order in a Rs 4.6 crore GST demand case in Telangana.
The company on Tuesday said the Telangana GST appellate authority has confirmed a demand seeking reversal of excess input tax credit (ITC) claimed by the company, involving a total amount of ₹4.60 crore.
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The order was issued by the Appellate Joint Commissioner (ST), Malkajgiri Division, Hyderabad, under provisions of the Central GST Act and Telangana GST Act for the financial year 2020-21, the pharmaceutical company said in a regulatory filing.
Bombay High Court Quashes ₹79.7 Crore GST Demand Against Dharma Productions, Says Films Are Not IT SoftwareAccording to the company, the appellate authority upheld the demand related to an alleged excess ITC claim of ₹2.56 crore. The amount includes interest of ₹1.78 crore and a penalty of ₹25.64 lakh, taking the total disputed liability to ₹4.60 crore.
The latest order confirms an earlier decision issued on February 28, 2025, which alleged that the company had claimed higher ITC in its GSTR-3B filings compared with figures reflected in GSTR-2A for FY 2020-21.
Aurobindo Pharma said it received the appellate order on September 28 and intends to challenge the decision before the GST Appellate Tribunal.
The company further clarified that the development is not expected to have any significant impact on its business operations or financial performance.