I'm facing an issue with paragraph alignment after a list item. See the bitmap that makes it more clear:
Heading
First line
Bullet 2
Second line is aligned with the list above. I did used two blank-lines to signify the end of list.
Any pointers are greatly appreciated.
This has nothing to do with org-mode: it's how LaTeX indents paragraphs after the first one (at least in the default styles); it does not happen when exporting to e.g., HTML.
For LaTeX, you can set the indent to 0 if you want all paragraphs to start at the left margin, by adding this to the top of your org file:
#+LATEX: \setlength{\parindent}{0pt}