Torrent Pharmaceuticals Limited has disclosed that the Commercial Tax Officer of State Tax, Tiruvallur, Tamil Nadu, has passed an order imposing a penalty of ₹3,12,32,860. This penalty is aggregated over four years and relates to GST matters concerning JB Chemicals and Pharmaceuticals Limited prior to its acquisition by Torrent Pharma. The company plans to file an appeal and is optimistic about a favorable resolution, anticipating no material financial impact.
Tax Order Issued to Torrent Pharmaceuticals
Torrent Pharmaceuticals Limited has been notified of an order passed by the Commercial Tax Officer of State Tax, Tiruvallur, Tamil Nadu. The order, dated 03rd November, 2026 and received on 04th November, 2026, imposes a penalty amounting to ₹3,12,32,860. This penalty is aggregated for a period of four years.
Details of the Penalty
The penalty pertains to Goods and Services Tax (GST) matters related to JB Chemicals and Pharmaceuticals Limited (a subsidiary acquired by Torrent Pharma). The period under review for these GST matters is from FY 2020-21 to FY 2023-24, which is prior to the acquisition of JB Chemicals by Torrent Pharmaceuticals. The order was passed under Section 74 of the Goods and Services Act, 2017.
Company’s Stance and Outlook
Torrent Pharmaceuticals has indicated that based on its internal assessment, an appeal will be filed against this order. The company expressed its confidence in achieving a favorable outcome at the appellate level. Consequently, Torrent Pharmaceuticals does not reasonably expect this order to have any material financial impact on its operations or financial performance.
Source: BSE
