Intimation of receipt of order from the Deputy Commissioner, Punjagutta (ST) STU-1 of GST, Punjagutta Division Hyderabad.
Awaiting price reaction for this filing.
The Appellate Joint Commissioner (ST), Punjagutta, Hyderabad has rejected Aurobindo Pharma's appeal against an earlier GST order for FY 2019-20. The order demands reversal of Input Tax Credit (ITC) of Rs 3.74 crore, interest of Rs 2.94 crore, and a penalty of Rs 0.38 crore, taking the total dispute to about Rs 7.06 crore. The allegation is excess ITC claim compared to GSTR-2A data and ITC claimed on supplies from non-filers of GSTR-3B. The company plans to file a further appeal before the GST Appellate Tribunal (GSTAT). The company has stated there is no material impact on its financials or operations from this order.
The financial hit is small relative to Aurobindo Pharma's size, so day-to-day operations are unlikely to be affected. However, prolonged GST litigation remains a watch item; an adverse ruling at GSTAT could set a precedent for similar claims on other years.