Kalpataru Projects International has received partial relief in a Goods and Services Tax (GST) dispute, with the Appellate Authority reducing the penalty to Rs. 56.63 lakhs following an appeal filed by the company. The Appellate Authority’s order was received by the company on 11th May, 2026 at about 02.00 P.M. (IST). The development was disclosed to the stock exchanges on 12th May, 2026 under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Background of the GST Dispute
The matter originates from an order issued by the GST Authority on 27th December, 2024, under Section 74 of the Central Goods and Services Tax Act, 2017, read with relevant provisions of the State Goods and Services Tax Act, 2017. The authority had demanded tax, interest, and penalty covering the financial years 2017-18 to 2021-22. The key details of the original order are summarised below:
| Parameter: | Details |
| Authority: | GST Authority |
| Period Covered: | FY 2017-18 to FY 2021-22 |
| Original Penalty Demanded: | INR 2.64 Crores |
| Date of Original Order: | 27th December, 2024 |
| Grounds of Demand: | Alleged wrong availment of credit of education & higher education cess, non-payment of tax on corporate guarantees, non-payment of tax under Reverse Charge Mechanism, etc. |
At the time of the original order, the company had stated that the order was issued without considering its submissions, and that the matter also pertained to interpretation of law under the Act. The company had further noted that the penalty did not have any significant impact on its financial or operational activities.
Appellate Authority Grants Partial Relief
Following the company’s appeal before the Appellate Authority, the authority has partially allowed the appeal, resulting in a reduction of both the tax and interest demand as well as the penalty. The revised penalty now stands at Rs. 56.63 lakhs, compared to the original demand of INR 2.64 Crores.
| Metric: | Details |
| Original Penalty Demanded: | INR 2.64 Crores |
| Revised Penalty (Post Appeal): | Rs. 56.63 lakhs |
| Date of Appellate Order Received: | 11th May, 2026 |
| Nature of Relief: | Partial — tax, interest, and penalty demand reduced |
Company’s Position and Next Steps
Kalpataru Projects International has indicated that the Appellate Authority’s order was issued in partial consideration of the reply and documentary evidences submitted by the company. The company has stated that it has a strong case to defend the matter before the higher appellate authority and intends to file a further appeal against the said order within prescribed timelines. The disclosure was signed by Shweta Girotra, Company Secretary, on behalf of Kalpataru Projects International Limited.
