Mumbai, February 3, 2025 – Afcons Infrastructure Limited has disclosed that it has received an order from the Joint Commissioner (CGST & CX), Thane Commissionerate, imposing a penalty related to the alleged ineligible input tax credit (ITC) availed and utilized under Section 74(9) of the CGST Act, 2017 for the financial years 2017-18 to 2018-19 (covering the period from July 2017 to March 2019).
Details of the Penalty
- Total Penalty Amount: ₹38.82 crore
- Previously Claimed Penalty: ₹14.39 crore (already claimed by GST authorities in a separate order, disclosed to stock exchanges on February 1, 2025)
- Allegation: Incorrect availment and utilization of ITC
Company’s Response
Afcons Infrastructure has asserted that the penalty order is unsustainable on multiple grounds:- Despite recording the company’s submissions, the order does not provide any findings.
- The company claims that the ruling violates judicial comity and the prohibition on parallel proceedings.
Next Steps
Afcons has confirmed that it will pursue legal remedies, including filing an appeal against the order.Impact on Financials
The company reassured investors that it does not expect any material impact on its financials, operations, or other activities due to this penalty.Market Implications
Afcons Infrastructure is listed on BSE (Scrip Code: 544280) and NSE (Symbol: AFCONS), and this development may influence investor sentiment. The company has formally notified the BSE Limited and National Stock Exchange of India Ltd regarding this regulatory action.Afcons remains committed to resolving the matter legally while maintaining its business continuity.
