Kolte Patil Developers received a show cause notice from the Office of the Assistant Commissioner of State Tax, Mumbai, demanding a total GST liability of Rs 103.82 Cr. The notice, dated 19 June 2026, pertains to financial years from 01-04-2020 to 31-03-2026 and includes interest and penalties. The company stated that the demand is not maintainable and plans to evaluate all possible legal options to contest it.

The show cause notice was issued under Section 74(1) of the CGST/MGST Act, 2017. It follows an earlier intimation received on 04 June 2026 under Section 74/74A of the same Act, which the company had previously disclosed to the stock exchanges. The recent communication increases the penalty amount by Rs 39.40 Cr.

Reasons for the Demand

The GST authority has raised the demand based on the ascertainment of tax liability related to specific activities. These include the purchase of Transferable Development Rights (TDR), construction services provided to society members under redevelopment projects, and development rights procured from society members in lieu of construction services.

Financial Implications and Penalty

The total demand stands at Rs 103.82 Cr, inclusive of interest and penalties. The specific penalty component amounts to Rs 46.35 Cr. The company has disclosed that it does not envisage any relevant impact on its financials, operations, or other activities as it believes the levy is erroneous.

Company Response

Kolte Patil Developers maintains that the levy of GST, along with interest and penalty, is wholly erroneous and unsustainable in law. The company asserts that the notice was issued without appreciating the facts of the case. It has reasonable grounds to defend its position and intends to take appropriate legal action within the permissible timelines.

Kolte-Patil Developers Limited has received a GST liability intimation of Rs 64.42 crore from the Office of the Assistant Commissioner of State Tax, Jurisdiction, Mumbai, Maharashtra. The demand, issued under Section 74/74A of the CGST/MGST Act, 2017, covers the financial years from 01-04-2020 to 31-03-2026 and includes interest and penalties. The company contends that the levy is erroneous and plans to pursue legal remedies to contest the demand.

The communication, received on 03 June 2026, pertains to the ascertainment of tax liability on specific activities. These include the purchase of Transferable Development Rights (TDR), construction services provided to society members under redevelopment projects, and development rights procured from society members in lieu of construction services. The authority has identified a penalty of Rs 6.95 crore within the total demand.

Financial Implications and Response

Based on its preliminary assessment, Kolte-Patil Developers believes the levy of GST, along with interest and penalty, is wholly erroneous and not sustainable in law. The company stated that the demand was raised without appreciating the facts of the case and is arbitrary and unjustified. Management has indicated that it will take appropriate legal action within the permissible timelines to defend its position.

The company does not envisage any relevant impact on its financials, operations, or other activities as a result of this communication. The disclosure was made to the exchanges pursuant to Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Breakdown of Demand