Arkade Developers receives GST tax demand order of Rs 13,73,857
Arkade Developers received a tax demand order of Rs 13,73,857 for FY 2022-23 from the Assistant Commissioner, Central GST and Central Excise, Thane. The order cites violations regarding ITC availment and GST payable on TDRs. The company stated there is no material impact and is considering filing an appeal after obtaining legal opinion.
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Arkade Developers has received a tax demand order amounting to Rs 13,73,857 from the Assistant Commissioner, Central Goods and Services Tax and Central Excise, Division III, Thane Commissionerate. The order, issued under the applicable provisions of the GST Act, 2017, pertains to the financial year 2022-23 and was received by the company on July 10, 2026. The company has stated that there is no material impact on its financial or operational activities resulting from this demand.
The regulatory disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The order cites specific violations, including the availment of Input Tax Credit (ITC) for certain transactions and GST payable on Transferable Development Rights (TDRs). Additionally, the demand includes interest on the availment of ITC for certain transactions.
Details of the GST Demand
The annexure provided with the disclosure outlines the specifics of the order and the alleged contraventions. The table below summarizes the key details regarding the authority, the nature of the action, and the timeline of the order.
| Sr. No. | Particulars | Details |
|---|---|---|
| 1. | Name of the Authority | Assistant Commissioner, Central Goods and Services Tax and Central Excise, Division III, Thane Commissionerate |
| 2. | Nature and details of the action(s) taken or order(s) passed | Imposition of tax Demand of Rs 13,73,857/- under applicable provisions of the GST Act, 2017 |
| 3. | Date of receipt of direction or order | The order dated July 09, 2026, was received by the Company on July 10, 2026 for FY 2022-23 |
| 4. | Details of the violation(s)/contravention(s) committed or alleged to be committed | 1. Availment of ITC for certain transactions 2. GST Payable on TDRs 3. Interest on availment of ITC for certain transactions |
| 5. | Impact on financial, operation or other activities of the listed entity | There is no material impact on financial & operational activities of the Company. The Company is in the process of taking necessary legal opinion and considering filing an appeal. |
Company Response and Next Steps
Arkade Developers has indicated that it is currently in the process of obtaining necessary legal opinion regarding the order. Following this, the company is considering filing an appeal against the demand. The disclosure was signed by Amit Mangilal Jain, Chairman & Managing Director of the company. The BSE Scrip Code for Arkade Developers is 544261, and it trades on the NSE under the symbol ARKADE.
Historical Stock Returns for Arkade Developers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.50% | +5.85% | +21.14% | +11.34% | -32.06% | -15.80% |
How might the outcome of the potential appeal influence Arkade Developers' future compliance strategies regarding Input Tax Credit and Transferable Development Rights?
Could this tax demand signal a broader trend of increased scrutiny on GST practices within the real estate sector for FY 2022-23?
What are the potential legal costs and timeline implications if the company decides to challenge the order before the appellate authority?
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