Kalpataru Projects International Receives GST Order Imposing Rs 6.76 Crore Penalty Over ITC and RCM Issues:

Kalpataru Projects International has received a Goods and Services Tax (GST) order, passed by the tax authorities under Section 73 of the Central Goods and Services Tax Act, 2017. The order has imposed a penalty of Rs 6.76 crore, along with tax and interest for financial years 2018-19 and 2020-21. The company had received the order on October 28, 2026.

According to the order, the company is alleged to have availed excess Input Tax Credit (ITC) and made short payments under the Reverse Charge Mechanism. Along with this, discrepancies have been noticed in the company's tax payments.

However, the company believes that the notice is invalid as per the law, as the concerned GST authorities had passed the order without considering its prior reply and documentary evidence.

The company claims that it has strong legal grounds to challenge the order before the relevant appellate authority. The company is planning to file an appeal to challenge the order and the demand raised therein within the prescribed time limit.

Further, the company does not expect any significant impact on its financial, operational and business operations as a consequence of the present levied penalty.

Kalpataru Projects International has made the aforementioned disclosure to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.