Torrent Power Limited has received a significant GST demand order from tax authorities in Agra, totaling ₹189.42 crores including penalties. The company disclosed this development to stock exchanges on March 28, 2026, pursuant to regulatory requirements under SEBI Listing Regulations.

GST Demand Details

The demand order dated March 27, 2026 was received from the Office of the Additional Commissioner, Agra, Lucknow, CBIC, State: Uttar Pradesh. The order demands ₹94.71 crores of CGST & SGST for the period from April 2019 to September 2024 under provisions of Section 74 & 74A of CGST Act 2017 read with Section 74 & 74A of UPGST Act 2017 and Section 20 of IGST Act 2017.

The demand specifically relates to GST on rent on immovable properties and on incidental and ancillary services. The department has also imposed an equal penalty amount of ₹94.71 crores under various sections of the GST Acts.

Breakdown of Demand and Penalty

Company's Response and Impact

Torrent Power has indicated it will challenge the order and file an appeal against the said demand. The company has stated that there is no material financial impact expected from this development, suggesting confidence in its position regarding the disputed GST liability.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received the order on March 27, 2026 at 6:27 pm when it was uploaded on the GST portal, and promptly informed the stock exchanges the following day.

The demand order references violations under multiple sections of GST legislation, specifically Section 74 & Section 74A of the CGST Act, 2017 read with Section 74 & 74A of the UPGST Act and Section 20 of IGST Act, 2017. The case involves a substantial period of over five years, from April 2019 to September 2024, indicating the scope and complexity of the tax assessment.

Torrent Power has completed the acquisition of 100% stake in Torrent Urja 47 Private Limited for ₹5 lakh from its wholly owned subsidiary Torrent Green Energy Private Limited. The transaction was executed on March 27, 2026, at 6:42 pm as part of the company's strategic expansion into thermal power operations.

Transaction Structure and Details

The acquisition involved the purchase of 50,000 equity shares at face value of ₹10 each, totaling ₹5,00,000. The transaction was conducted as an arm's length deal between related parties, ensuring compliance with regulatory requirements under SEBI Listing Regulations.

Target Company Profile

Torrent Urja 47 Private Limited was incorporated on March 19, 2025, and is registered with the Registrar of Companies, Gujarat at Ahmedabad. The company operates in the electricity generation sector with an authorized and paid-up share capital of ₹5,00,000 each.

Strategic Business Objectives

The acquisition aligns with Torrent Power's broader strategy to establish a separate thermal business vertical. The company is actively considering various proposals for acquiring thermal power plants either directly or through subsidiary companies to strengthen its position in the thermal power generation segment.

Regulatory Compliance

Torrent Power disclosed the acquisition under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The transaction has been structured as a related party transaction conducted at arm's length, with no additional governmental or regulatory approvals required for completion.