H.G. Infra Engineering Faces Rs 94 Crore GST Demand Proposal for FY 2022-23 Over ITC, Turnover Reconciliation:

H.G. Infra Engineering Limited has received a show cause notice (SCN) dated September 16, 2026, passed by the Deputy Commissioner of Commercial Taxes, Karnataka, Bengaluru, under Section 73(1) of the Central Goods and Services Tax (CGST) Act, 2017, and the Karnataka Goods and Services Tax (KGST) Act, 2017, in relation to GST proceedings ongoing against the company for the Financial Year 2022-23.

The notice has proposed an aggregate demand amounting to approximately Rs 94 crore. Through the notice, the company has been asked to specify the reason why the proposed demand should not be imposed on it. The company had received the said notice on September 16, 2026.

According to an Intimation issued by the company on September 16, 2026, "the Notice contains various observations relating to input tax credit and reconciliation of turnover reported in the GST returns with the financial statements."

The company has a strong belief that the notice is unsustainable as per the law. Consequently, the company does not expect any financial, operational or business impact from the present notice. If any, it would depend on the outcome of the adjudication proceedings.

The intimation says that "based on the merits of the matter, factual position and prevailing law, the Company shall be filing a response to the SCN with factual position with proper documentation before the Assessing Authority and reasonably expects a favorable outcome."

H.G. Infra Engineering Limited has disclosed the aforementioned information to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE), in pursuance of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”).