Torrent Power has disclosed receiving a demand order from the Office of the Additional Commissioner, Agra, amounting to ₹189.42 Crore. This demand covers CGST, SGST, and a penalty for the period spanning April 2019 to September 2024, related to GST on rent and ancillary services. The total demand includes a tax component of ₹94.71 Crore and an equal penalty amount. The company has confirmed it will challenge the order, asserting that there will be no material financial impact.
Tax Authority Issues Significant Demand Order
Torrent Power Limited has officially announced the receipt of a demand order from the tax authorities in Uttar Pradesh. The order, dated March 27, 2026, was received at 6:27 PM. This communication pertains to a demand concerning GST levied on rent for immovable properties and incidental/ancillary services provided by the Company during the period from April 2019 to September 2024.
Breakdown of the Total Demand
The total demand raised by the authorities is substantial, amounting to ₹189,42,22,996. This total is broken down into tax demands, interest, and penalties, as detailed below:
- CGST Demand: ₹47,35,55,749 (Tax) + ₹47,35,55,749 (Penalty) = ₹94,71,11,498
- SGST Demand: ₹47,35,55,749 (Tax) + ₹47,35,55,749 (Penalty) = ₹94,71,11,498
- Interest Charged: ₹0
- Total Tax Demand (CGST + SGST): ₹94,71,11,498
The penalty imposed is stated to be of a similar amount to the tax demand under various sections of the CGST, UPGST, and IGST Acts of 2017.
Company Response and Financial Outlook
In response to the action taken by the Office of The Principal Commissioner, CGST & Excise, Agra, Torrent Power has clearly stated its intent to proceed with legal recourse. The Company confirmed that it will challenge the order and file an appeal against the said demand. Furthermore, management has assessed the immediate consequences, stating that there is no material financial impact to the Company’s operations or finances at this stage.
Regulatory Disclosure Details
This disclosure was made by the Company Secretary & Compliance Officer, Rahul Shah, on March 28, 2026, in compliance with relevant listing regulations regarding material events.
Source: BSE
