NewsCapacit'e Infraprojects Receives Adverse GST Order from Deputy Commissioner, Plans Higher AppealCapacit'e Infraprojects Receives Adverse GST Order from Deputy Commissioner, Plans Higher Appeal
Capacit'e Infraprojects Limited received an adverse order from the Deputy Commissioner of State Tax on April 02, 2026, upholding GST demands from proceedings dating back to July 30, 2021. The company plans to appeal to higher forums within prescribed timelines while maintaining that amounts are already disclosed as contingent liabilities with no immediate financial impact on operations.
*this image is generated using AI for illustrative purposes only.
Capacit'e Infraprojects Limited has informed stock exchanges about receiving an adverse order from the Deputy Commissioner of State Tax on April 02, 2026, regarding ongoing GST proceedings. The appellate authority has upheld the original demands, marking a setback in the company's efforts to contest the tax assessment.
Background of GST Proceedings
The current order stems from GST proceedings that originated from an order issued by the Assistant Commissioner of State Tax – Maharashtra on July 30, 2021. The company had previously disclosed these proceedings to the exchanges on September 14, 2023, maintaining transparency about the ongoing tax dispute.
| Parameter: | Details |
|---|---|
| Original Order Date: | July 30, 2021 |
| Previous Disclosure: | September 14, 2023 |
| Current Order Date: | April 02, 2026 |
| Issuing Authority: | Deputy Commissioner of State Tax |
Current Status and Financial Impact
The Deputy Commissioner of State Tax, acting as the Appellate Authority, has upheld the demands of the same amount as originally assessed. However, the company has clarified that the amounts involved are already disclosed as contingent liabilities in its financial statements, ensuring no immediate financial impact on its operations.
Capacit'e Infraprojects has emphasized that there is no impact on its financial operations or other business activities despite the adverse order. The company maintains that it has adequate factual and legal grounds to substantiate its position in the matter.
Next Steps and Company Response
The company is currently in the process of filing an appeal before higher appellate forums against the Deputy Commissioner's order. This appeal will be filed within the prescribed timelines as mandated by tax regulations. The company has expressed confidence in its ability to reasonably substantiate its position based on factual and legal grounds.
| Action Item: | Status |
|---|---|
| Appeal Filing: | In process |
| Timeline: | Within prescribed limits |
| Forum: | Higher Appellate Forums |
| Company Confidence: | Adequate grounds available |
Regulatory Compliance
In line with regulatory requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has promptly informed both BSE Limited and National Stock Exchange of India Limited about this development. The disclosure has also been made available on the company's website at www.capacite.in for stakeholder access.
Historical Stock Returns for Capacite Infraprojects
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.35% | -4.44% | -12.71% | -25.11% | -39.37% | +4.24% |
How might prolonged GST litigation affect Capacit'e Infraprojects' ability to secure new infrastructure contracts with government entities?
What potential impact could similar GST assessments have on other infrastructure companies operating in Maharashtra?
Will the company need to increase its contingent liability provisions if higher appellate forums also rule against them?
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