Kalpataru Limited subsidiary Ananta Landmarks Private Limited (ALPL) has received a show cause notice from the GST Department demanding ₹14 crore in tax, interest, and penalty for FY23.

The notice, dated September 24, 2026, was issued by the Deputy Commissioner of State Tax. It pertains to payments made to municipal corporations on a reverse charge basis and the disallowance of input tax credit during the fiscal year.

Regulatory Disclosure Details

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Kalpataru informed the stock exchanges that ALPL is a wholly owned subsidiary. The company received information about the notice on September 24, 2026, at 7:04 pm.

Key Financial Implications

Kalpataru stated that ALPL is advised the notice is devoid of merits and will contest the demand. The parent company emphasized that this show cause notice does not have any material financial impact on its operations.

What the Numbers Show

The demanded amount of ₹14,00,00,892 represents a specific liability claim for FY23 rather than a current operational shortfall. Since Kalpataru explicitly categorizes the impact as immaterial, the figure serves as a contingent liability disclosure rather than an immediate earnings hit. The focus remains on the legal contestation of the reverse charge mechanism application and input tax credit eligibility for the prior fiscal year.

The Goods and Services Tax Authority has filed an appeal against an order in favor of Kalpataru Limited 's wholly owned subsidiary, Abacus Real Estate Private Limited, regarding a transitional credit demand.

Regulatory Disclosure

Kalpataru Limited disclosed the development to stock exchanges on September 17, 2026. The filing was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Case Background

Abacus Real Estate had previously challenged an order dated May 27, 2024, issued by the Adjudicating Authority of the Hyderabad GST Commissionerate. The original order demanded ₹1,35,66,011 along with applicable interest and an equivalent penalty for the period July 1, 2017, to March 31, 2018.

The Principal Commissioner (Appeals-I), Hyderabad GST Commissionerate, allowed Abacus' appeal via an Order-in-Appeal dated January 29, 2026. The GST Authority has now appealed this decision before the Goods and Services Tax Appellate Tribunal.

Financial Impact

The company stated that the filing of the appeal before the tribunal does not have any material financial impact on its operations. Abacus intends to defend the case and remains hopeful of a favorable outcome.