Durgmaker Torrent Pharmaceuticals, on Friday, informed the stock exchanges that it has been fined Rs 41 crores by a Joint Commissioner with the Central GST, Ahmedabad South Commission rate, alleging wrongful refund claims on export of goods.
According to a regulatory filing, the action was taken under Section 74 of the Central Goods and Services Tax Act, 2017, which deals with cases involving tax not paid, short-paid or erroneously refunded.
The department has alleged that the company received an erroneous GST refund on exports, prompting the penalty.
The company said it will file an appeal against the order and expressed confidence in securing relief. It added that it does not expect any material financial impact from the penalty “based on the company’s assessment.”
Operations and other activities are expected to continue without disruption while the appeal process is underway, the filing said.
