Torrent Pharmaceuticals Limited has received communication(s) for collection of penalty from Indian tax authorities. Name of the authority: Deputy Commissioner of State Tax Ghaziabad, Uttar Pradesh Sales Tax Officer Class II, AVATO, Ward 203, Zone -11, Delhi. Nature and details of the action taken, initiated or order passed: Order passed under Section 73 of the Goods and Service Act, 2017, imposing a penalty of INR 20,000.

Order passed under Section 73 of the Goods and Service Act, 2017, imposing a penalty of INR 1,081,477. Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority: 29 April 2024. 29th April 2024 (reflected in GST portal on 1st May, 2024).

Details of the violation/contravention committed or alleged to be committed: The Order alleges 1. Outward supplies bearing HSN codes which are not a part of inward supplies. 2. Generation and later cancellation of Part-A of eway bills by erstwhile Curatio Health Care (I) Private Limited (?Curatio?) for tax period 2018-19. The Company had acquired Curatio in October 2022 which was subsequently merged into the Company.

The Order alleges 1. Under declaration of Output Tax from GSTR-1 vs GSTR-9 and E-way Bill 2. Excess claim of ITC under ISD, Exempt/Non-business supply and under declaration of ineligible credit along with ITC claimed from cancelled dealers, return defaulters & tax non-payers. Impact on financial, operation, or other activities of the listed entity, quantifiable in monetary terms to the extent possible: Based on the Company assessment, an appeal will be filed and the Company is hopeful of favorable outcome at the appellate level and does not reasonably expect the said Order to have any material financial impact on the Company.