Tata Power Company Limited, one of India’s leading energy companies, has recently disclosed that it received a Goods and Services Tax (GST) penalty of ₹2.40 lakh from the Uttar Pradesh Tax Department. The penalty was issued by the Deputy Commissioner of State Tax due to discrepancies found in the transportation documents accompanying a consignment of goods.

This update was shared with the stock exchanges on July 9, 2025, in compliance with regulatory disclosure requirements.

Why Was the Penalty Issued?

According to Tata Power’s filing, the penalty was imposed under Section 129(3) of the Integrated Goods and Services Tax (IGST) Act. This section empowers tax authorities to detain goods and impose penalties if there are irregularities in the documentation during the movement of goods.

In this case, the issue involved errors or omissions in the transport documents—likely involving missing or incorrect details in the invoice or e-way bill, which are mandatory under GST laws when goods are moved between locations.

The penalty was imposed after the goods were temporarily detained by the tax department, a standard enforcement action under the law.

Tata Power’s Response

Tata Power clarified in its exchange filing that the penalty has no material impact on its financials, operations, or ongoing business activities. The company has treated the matter as a routine compliance issue and is taking the necessary steps to address the discrepancy.

The disclosure was made in accordance with SEBI’s circular dated November 11, 2024, which mandates listed companies to report any regulatory penalties or legal actions that may be of interest to investors or stakeholders.

About Tata Power

Tata Power Company Limited is one of India’s largest integrated power companies, with operations across the entire power value chain — including generation (thermal, hydro, solar, and wind), transmission, distribution, and trading.

The company has made significant strides in the renewable energy space and is expanding its presence in solar rooftops, EV charging infrastructure, and smart energy solutions.

In FY 2024–25, Tata Power reported strong performance:

  • 💰 Revenue: ₹61,000 crore (12% growth YoY)

  • 📈 Net Profit: ₹4,100 crore (up from ₹3,570 crore in FY24)

  • ⚡ EBITDA: Up by 14%, driven by growth in renewables and transmission

  • 💵 Dividend Declared: ₹2.00 per share

These figures underline the company’s growing strength, especially in sustainable energy initiatives and digital innovation in the power sector.

Conclusion

While the ₹2.40 lakh GST penalty may raise eyebrows, Tata Power has clarified that it’s a minor, non-material issue. It reflects the increasing scrutiny and enforcement under India’s GST regime, where accurate transport documentation is critical.

For businesses, this incident serves as a reminder to ensure strict compliance with GST transport documentation rules to avoid penalties. Meanwhile, Tata Power continues to perform strongly across all fronts, reaffirming its leadership in India’s energy transformation journey.