Afcons Infrastructure Faces ₹143.94 Crore GST Penalty, Plans to Appeal

Mumbai, February 1, 2025 – Afcons Infrastructure Limited (BSE: 544280, NSE: AFCONS) has disclosed that it has received an order from the GST Authority imposing a penalty of ₹143.94 crore for allegedly availing and utilizing ineligible input tax credit under Section 74(7) of the CGST Act 2017 for the financial years 2017-18 and 2018-19 (from July 2017 to September 2018).

Regulatory Action and Company’s Response​

The penalty was issued by the Joint Commissioner (CGST & CX), Thane Commissionerate on January 31, 2025. The authority claims that the company incorrectly availed input tax credit, leading to the imposition of the substantial fine.

Afcons, in its statement, has contested the penalty, stating that "the imposition of penalty is unsustainable as the order does not provide any findings despite recording submissions." The company has also emphasized that "judicial comity and prohibition on parallel proceedings" must be considered in such cases.

Financial and Operational Impact​

Afcons has assured stakeholders that this penalty will not have a material impact on its financials, operations, or other business activities. The company intends to appeal the order and take all necessary legal steps.

Next Steps​

With Afcons preparing to challenge the penalty, the case could proceed to the appellate level, potentially prolonging the dispute. Investors and stakeholders will be closely monitoring further developments as the company seeks relief from the order.