G R Infraprojects has received a GST show cause notice amounting to ₹321.60 crore from the Madhya Pradesh tax department.

Notice details

The notice, issued in Form GST DRC-01 on August 25, 2026, comes from the Office of the Joint Commissioner of State Tax, Ratlam Division, Indore. It is filed under Section 74 of the CGST Act, 2017 and the MPGST Act, 2017.

The key details of the disclosure are:

The notice cites discrepancies including alleged excess or ineligible availment of input tax credit and mismatches in e-way bill and GSTR-3B data. The proposed demand of ₹321.60 crore comprises tax, interest, and penalty.

Company stance

G R Infraprojects stated that it is preparing its response to the notice. The company believes it has strong legal and factual grounds to defend its position. It does not currently anticipate any material financial impact or liability arising from the proposed demand.

A show cause notice requires the recipient to respond to the tax authority's findings before any formal demand or penalty order is passed. The issuance does not constitute a final tax adjudication.

The Rajasthan High Court has dismissed a writ petition filed by GR Infraprojects subsidiary Nagaur Mukundgarh Highways Private Limited, rejecting its challenge to the levy of Goods and Services Tax (GST) on annuity payments received under concession agreements.

The judgment, dated August 17, 2026 and received by the company on August 18, 2026, pertains to a dispute involving an aggregate amount of approximately Rs 69.79 crore. The subsidiary had challenged the applicability of CBIC Circular No. 150/06/2021-GST, issued on June 17, 2021, before the Hon’ble High Court of Judicature for Rajasthan at Jodhpur.

Legal Developments and Next Steps

GR Infraprojects disclosed the development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

The company stated it is evaluating the judgment and assessing appropriate legal remedies in consultation with its legal advisors. No settlement details were provided, as the proceedings remain active.

What the Numbers Show

The dismissal of the petition exposes the infrastructure developer to potential tax liabilities totaling Rs 69.79 crore. This figure represents the aggregate amount involved in the litigation challenging the GST circular's applicability to annuity income. The outcome shifts the financial risk from a disputed regulatory interpretation to a likely liability or further appellate cost, depending on the company's decision to appeal.