Mumbai, February 4, 2025 – Kalpataru Projects International Ltd. (NSE: KPIL, BSE: 522287) has disclosed that it has received an order from the Goods and Services Tax (GST) Authority under Section 74 of the Central Goods and Services Tax Act, 2017. The order, received on February 3, 2025, at 1:28 PM IST, pertains to a demand for tax, interest, and penalties relating to alleged wrongful availment of Input Tax Credit (ITC) for the financial year 2017-18 by erstwhile JMC Projects (India) Limited, which has since been amalgamated with Kalpataru Projects.
Key Financial Implications
- Tax Dispute Origin: The issue pertains to JMC Projects (India) Limited’s ITC claims for FY 2017-18.
- Penalty Amount: The GST Authority has demanded a penalty payment of INR 84.59 lakhs.
- Financial Impact: The company stated that this penalty does not have a significant impact on its operations or financials.
Company’s Response & Legal Stand
Kalpataru Projects maintains that the order was issued without due consideration of the submissions and documentary evidence provided by the company. As a result, it intends to challenge the order by filing an appeal with the Appellate Authority within the prescribed timelines.“The company has a strong case to defend and will prefer an appeal before the Higher Authorities,” the disclosure stated.
Conclusion
While the tax dispute adds a regulatory challenge, Kalpataru Projects does not foresee any material impact on its business. Investors will be closely watching the company’s legal strategy and resolution of the matter in the coming months.For further updates, stakeholders are advised to refer to official regulatory filings and announcements.