GST Dept Conducts Search Operation at Registered Office of GK Energy; Disallows ITC on IPO Expenses and Other Claims

GK Energy Limited has disclosed that a search proceeding was conducted by the Assistant Commissioner of State Tax, Maharashtra (State Goods and Services Tax Department) at the Registered Office of the Company under the provisions of the Maharashtra Goods and Services Tax Act, 2017.

The search operation was started on February 27, 2026, and ended on March 04, 2026. The company claimed that its officials had fully cooperated with the GST department’s officials at the time of the search operation and provided all the necessary documents, information, and clarifications asked for by the department.

The present information has been disclosed by the company through a regulatory filing dated March 05, 2026, addressed to the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) under Regulation 30 read with Para A of Part A of Schedule III of the SEBI Listing Regulations, in continuation of an earlier disclosure dated February 27, 2026.

As a result of the search operation, the tax authorities disallowed the company’s ITC (Input Tax Credit) claim of Rs 4.75 crore on IPO expenses, reversed the ITC claim of Rs 1.65 crore on Sundry Creditors outstanding beyond 180 days, and disallowed the ITC of Rs 95.90 lakh claimed under Blocked Credit provisions.

The company has clarified that the present action does not have any impact on its financial, operational, and other activities. The company is not satisfied with the order and is planning to challenge the same under the GST law.