BSE: 538993 | January 31, 2025
Purohit Construction Limited has received a
GST demand order from the
Additional Commissioner, CGST, Ahmedabad South Commissionerate. The order demands an aggregate amount of
₹4.16 crore, comprising a
tax demand of ₹2.08 crore and a
penalty of ₹2.08 crore.
Background of the Case
This development follows a
show cause notice issued by DGGI, Ahmedabad, to which the company had submitted its response earlier on
February 17, 2024. The latest demand order pertains to the
financial year 2017-18, with tax authorities alleging
wrongful availment of Input Tax Credit (ITC).
Financial & Operational Impact
Purohit Construction Limited has stated that it believes the
demand is not maintainable and is currently evaluating legal options, including
filing an appeal. The company has also clarified that it does not anticipate any significant impact on its
financials, operations, or other business activities due to this order.
Strategic Outlook
Given the company’s stance on contesting the demand, the final resolution will depend on the outcome of potential legal proceedings. Investors will likely keep a close watch on further regulatory actions and the company's approach to resolving the dispute.