GST Order Confirms Rs. 1,85,28,762 Demand, Rs. 1,17,59,033 Interest, Rs. 18,52,476 Penalty

Biocon received an Order-in-Original from the Assistant Commissioner (ST), Atchuthapuram circle, Andhra Pradesh.

Sat 10 Oct 2026

GST demand

Rs. 1,85,28,762/-

Interest

Rs. 1,17,59,033/-

Penalty

Rs. 18,52,476/-

Order-in-Original received

Biocon Limited has informed BSE and NSE that it received an Order-in-Original (DRC-07) from the Office of the Assistant Commissioner (ST), Atchuthapuram circle, Visakhapatnam-2, Lankelapalem, Anakapalli Dist, Andhra Pradesh. The communication was received on October 09, 2026 at 15:21 IST.

What the order confirms

• Goods and Service tax demand of Rs. 1,85,28,762/-
• Interest of Rs. 1,17,59,033/-
• Penalty of Rs. 18,52,476/-
• The period covered is Financial Year 2022-23

What the tax authority says went wrong

• Non-submission of Special Economic Zone (SEZ) endorsement documents for zero-rated SEZ supplies
• Input tax reversed under temporary reversal instead of permanent reversal
• Improper claim of Input Service Distribution credits

What the company says

• There is no material impact on the financials, operations or other activities of the Company
• The impact will be limited to the extent of final liability as may be ascertained along with interest and penalty, if any
• The company intends to take appropriate action(s) including update a Rectification Application / Appeal
• No restriction or sanction has been imposed pursuant to the Order

A few terms in plain words

• An Order-in-Original is the first formal order a tax officer passes after hearing a case. It is not necessarily the final word if the company seeks rectification or appeals.
• Zero-rated supplies are supplies on which no GST is charged on the outward side, while the seller can still claim credit for taxes paid on inputs. SEZ endorsement documents are the paperwork that supports such supplies.
• Input tax credit is GST already paid on purchases, set off against GST payable. If the department feels a credit was reversed only temporarily when it should have been reversed permanently, it treats the set-off as wrong.
• An Input Service Distributor (ISD) is an office that receives invoices for common services and distributes the credit among the company's units. The department says some of that credit was claimed improperly.

What a reader can watch for

• The company has stated it intends to file a Rectification Application or an Appeal, so the amount demanded may change depending on the outcome.
• The company has itself stated the impact will be limited to the extent of final liability as may be ascertained along with interest and penalty, if any.

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