Afcons Infrastructure receives ₹1.18 crore GST demand for FY21 excess ITC
- Received GST demand order of ₹1.18 crore from Ahmedabad North authority
- Demand relates to excess Input Tax Credit for FY21 under CGST Act 2017
- Tax and penalty components each stand at ₹59.19 lakh; interest yet to be quantified
- Company plans to appeal the order and reports no immediate financial impact
*this image is generated using AI for illustrative purposes only.
Afcons Infrastructure Limited received a Goods and Services Tax (GST) demand order of ₹1.18 crore from the Ahmedabad North GST authority regarding excess Input Tax Credit availed in FY21.
The order was issued by the Assistant Commissioner, CGST, Division-VII, Ahmedabad North, on October 8, 2026. The demand relates to tax, interest, and penalty confirmed under Section 74(1) of the CGST Act 2017, stemming from a Show Cause Notice for the financial year 2020-21.
Breakdown of the Demand
The total demand aggregates to ₹1,18,38,402. This amount comprises a tax component of ₹59,19,201 and an equal penalty of ₹59,19,201. Interest under Section 50(3) of the Act remains to be quantified by the authorities.
| Component | Amount (₹) |
|---|---|
| Tax | 59,19,201 |
| Penalty | 59,19,201 |
| Interest | Yet to be quantified |
| Total | 1,18,38,402 |
Company Response
The company disputes the order in its entirety and intends to file an appeal before the appropriate appellate authority in accordance with applicable laws. Afcons stated that there is no financial impact on the company arising from this matter at present.
The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular dated January 30, 2026.
Historical Stock Returns for Afcons Infrastructure
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.03% | -0.14% | -13.63% | -20.33% | -47.27% | -48.96% |
How might the pending quantification of interest under Section 50(3) impact Afcons' future quarterly earnings reports?
Could this GST dispute trigger broader regulatory scrutiny or audits of Afcons' Input Tax Credit claims for other financial years?
What is the likely timeline and success probability for Afcons' appeal given historical precedents in similar CGST Section 74 cases?
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