Torrent Pharma Slapped with Rs 41.33 Crore GST Penalty for Alleged Erroneous Export Refunds

According to the official disclosure, the adjudicating authority has passed an order “under Section 74 of the Central Goods and Service Tax Act, 2017, imposing a penalty of ₹41,33,84,165/-.”

Allegation: Erroneous Refund on Export of Goods

Torrent Pharma revealed that the GST authority has alleged “erroneous refund by Department on export of goods.”

The filing does not detail the nature of the alleged error but Section 74 of the CGST Act typically deals with cases involving tax not paid, short paid, or erroneously refunded, where the department alleges fraud or wilful misstatement.

Company Says No Material Impact Expected

Torrent Pharma emphasised that while it will challenge the order, it expects no meaningful impact on its financials. The disclosure states:

“Based on the Company assessment, an appeal will be filed and the Company is hopeful of favorable outcome and does not reasonably expect the said Order to have any material financial impact on the Company.”

The company categorised the regulatory development as a disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates timely reporting of material events to stock exchanges.