GST Penalty: PSP Projects Receives Huge GST Penalty Order Over Rs 1 Crore

PSP Projects Limited, a construction company in India, has received a GST penalty order from the GST authority. The Company has informed the stock exchanges, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) about the order. In the filing, the company has disclosed that the GST authority has passed two orders to the company. The first order, dated June 11, 2025, is issued for the financial year 2020-2021 under section 74 of the CGST Act, 2017, imposing a penalty of Rs 11,91,333. The second order, dated June 20, 2025, is issued for the financial year 2019-2020 under the said section of the CGST Act, levying the penalty of Rs 91,48,707. The total GST penalty from the two orders is Rs 1,03,40,040.

As per the GST authority, the company has received this order because it has claimed Input Tax Credit of Goods and Services received from non-genuine taxpayers, cancelled taxpayers, non-existent taxpayers, and those taxpayers who have not filed their return and have failed to pay tax.

The company has clearly mentioned that this order has no material impact on the financials or operations of the company. Additionally, the company has also planned to challenge this order by filing an appeal with the appellate authority.

This disclosure was made under the SEBI Listing Regulations. However, the disclosure was not made on time for which the company has also given the reason for this delay, saying that it was due to the internal and external processes, as the internal team and outside experts needed time to review and analyse the order.