Torrent Pharmaceuticals gets tax demand order worth ₹3.99 crore for current FY

Pharmaceutical company Torrent Pharmaceuticals Ltd on Monday (April 8) said it has received a tax demand order worth Rs 3.99 crore for the current financial year. The order was issued by Joint Commissioner of State Taxes, Corporate Circle, Lucknow.

According to the details provided by Torrent Pharma, the order was passed under Article 73 of the Goods and Services Act of 2017, imposing a penalty of $3,88,809.60.

The violation alleged in the order relates to a difference in Input Tax Credit (ITC) received in the current financial year but utilized in subsequent financial years, as disclosed in the annual return (GSTR-9), and the ITC took advantage of an exempt supply made.

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Torrent Pharma, after learning of the issuance of the order, stated that it will file an appeal and was optimistic about a favorable outcome in the appeal. The company further stated that it does not anticipate the order to have any significant financial impact based on its assessment.

"Based on the company's assessment, an appeal will be filed and the company is hopeful of a favorable outcome at the appeal level and does not reasonably expect such an order to have any material financial impact on the company," Torrent Pharmaceuticals added.

Shares of Torrent Pharmaceuticals Ltd ended at ₹2,602.95, up ₹24.75, or 0.96% on the BSE.