Kalpataru Projects International Limited has secured a favorable ruling from the Appellate Authority, which set aside a Goods and Services Tax (GST) order for the fiscal year 2019-20. The decision eliminates a total liability comprising a tax demand of ₹1.52 crore, interest of ₹0.70 lakh, and a penalty of ₹15.17 lakhs. This resolution removes a contingent liability that had been flagged in an earlier intimation dated August 29, 2024, thereby preventing immediate cash outflow and validating the company’s defense against excess input tax credit claims for that period.

The company received the appellate order on July 23, 2026, at approximately 04:19 P.M. (IST). The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The original order had been issued by the GST Authority under Sections 73 and 74 of the State Goods and Services Tax Act, 2017, read with relevant provisions of the Central Goods and Services Tax Act, 2017.

Details of the Resolved Liability

The specific order set aside by the Appellate Authority pertained exclusively to the FY 2019-20 period. The financial components of the resolved demand are detailed below:

The primary allegation in the original order was the excess availment of Input Tax Credit (ITC). By setting aside this specific order, the Appellate Authority has nullified the requirement for Kalpataru Projects to pay these amounts for the specified fiscal year.

Context of Broader Dispute

While the FY 2019-20 matter has been resolved in favor of the company, the August 29, 2024 filing indicated broader disputes with various State GST Departments. The aggregate demands across all cited fiscal years (FY 2019-20, FY 2020-21, and FY 2021-22) included an aggregate tax amount of ₹2.97 crores, interest of ₹0.16 crores, and penalties of ₹1.61 crores. These broader allegations also cited time-barred availment of ITC and availment of ITC on blocked supplies.

What the Numbers Show

The resolution of the FY 2019-20 case represents a complete reversal of the assessed liability for that period. With the tax demand of ₹1.52 crore and associated costs removed, the immediate cash outflow risk associated with this specific vintage is eliminated. This outcome validates the company's defense strategy regarding input tax credit claims for that year, potentially strengthening its position in similar disputes across other fiscal years where allegations of excess ITC claims were also raised.

Kalpataru Projects International declared a final dividend of ₹11 per equity share for the financial year ended March 31, 2026, during its 45th Annual General Meeting held on July 15, 2026. The meeting, chaired by Non-Executive Chairman Mr. Mofatraj P. Munot, approved the adoption of the audited standalone and consolidated financial statements for the year. All resolutions presented to the shareholders were passed with the requisite majority, including key governance and statutory appointments.

The company approved the ratification of the remuneration of Cost Auditors for the financial year ending March 31, 2027. In addition to the financial approvals, the board secured shareholder approval for the re-appointment of Mr. Parag M. Munot, who retires by rotation. Mr. Gautam Mehra was appointed as an Independent Director, and shareholders granted authority under Section 180(1)(a) of the Companies Act, 2013.

Voting Results

The voting process was conducted via remote e-voting and e-voting during the AGM, scrutinized by Mr. Urmil Ved, Practicing Company Secretary. A total of 1,22,476 shareholders were on record as of the cut-off date of July 8, 2026. The resolutions saw significant participation, with the final dividend proposal receiving over 140.9 million votes in favour.

Meeting Proceedings

The AGM was conducted through Video Conferencing and Other Audio Visual Means in compliance with Ministry of Corporate Affairs circulars and SEBI regulations. Mr. Manish Mohnot, Managing Director & CEO, responded to shareholder queries during the session. The remote e-voting period commenced on July 11, 2026, and concluded on July 14, 2026, prior to the meeting. The scrutinizer's report confirmed that the electronic voting data was unblocked and witnessed post-conclusion of the meeting.