Kalpataru Projects International Limited received an order from the Additional Commissioner (Appeal) upholding a ₹1.45 crore GST penalty for the period FY20 to FY22. The appellate authority confirmed the demand alongside tax and interest liabilities, rejecting the company's earlier defense.

The order, received on September 23, 2026, stems from an original assessment by the GST Authority. The initial demand included a tax component of ₹1.45 crore and interest of ₹0.15 crore, totaling ₹3.05 crore in combined liability for the specified fiscal years. The authorities cited grounds including excess claim of Input Tax Credit (ITC), time-barred availment of ITC, and availment of ITC on blocked supplies.

Appeal History and Company Response

The company had previously filed an appeal before the Additional Commissioner (Appeal) after receiving the initial orders in August 2024. In its recent disclosure, Kalpataru Projects stated that it maintains a strong case for defense before higher appellate authorities. The company argued that the current order was issued without considering the reply and documentary evidence submitted during the proceedings.

Management plans to prefer a further appeal against this order within the prescribed timelines. The company noted that these amounts do not have a significant impact on its overall financial position or operations.

What the Numbers Show

The disclosure highlights a specific cluster of tax disputes related to Input Tax Credit compliance rather than broad operational tax issues. The penalty of ₹1.45 crore is equal to the tax demand of ₹1.45 crore, indicating a severe interpretation of non-compliance by the assessing authority. When combined with the interest of ₹0.15 crore, the total exposure for this specific case stands at ₹3.05 crore. This figure represents a subset of a larger aggregate demand disclosed in August 2024, which totaled ₹4.74 crore across tax, interest, and penalty for various state GST departments.

Kalpataru Projects International received an Environmental, Social, and Governance (ESG) rating of 62 from Niche Ninety Nine Capability and Certifications (OPC) Private Limited. The rating was assigned on September 18, 2026.

The company disclosed the development in a filing with the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Independent Assessment

Niche, a SEBI-registered ESG Rating Provider, assigned the score based on its own analysis and sources of information. The company clarified that it did not engage Niche for this specific ESG rating exercise.

The notification was issued by Shweta Girotra, Company Secretary, following the receipt of the rating via email at 12:11 pm on September 18, 2026. The rating is also reflected on Niche’s website.