Jubilant Pharmova subsidiary challenges $43.83 crore GST refund disallowance

Jubilant Pharmova announced on September 2, 2025, that its wholly-owned subsidiary, Jubilant Biosys Limited, received three Orders-in-Appeal from the additional commissioner central tax (appeals), Mysuru. These orders, dated August 29, 2025, allowed appeals filed by the GST Department and set aside earlier GST refund orders, deeming $43.83 crore in refunds as erroneous. The disallowance was based on the company allegedly claiming refunds under the incorrect CGST Rule 89(4) instead of 89(4B), and in some instances, incorrect refund calculations.

Jubilant Biosys Limited plans to file a detailed appeal with the Goods and Service Tax Appellate Tribunal (GSTAT), asserting that the Orders-in-Appeal are "legally incorrect, bad in law," and were passed without proper examination of the issues. The company highlights that Rule 89(4B) was deleted from CGST Rules on October 8, 2024, and argues that the omission of a rule without a saving clause should halt all actions from that date. It also notes that GST authorities had previously verified and sanctioned the original refunds.

Given these points, Jubilant Biosys Limited believes it has a "very strong case" and anticipates no financial or operational impact from these developments. The company is actively taking necessary action to challenge the orders.