Praveg Limited concludes GST litigation with nil order
Praveg Limited received a nil order from the Office of the Assistant Commissioner, Daman, on June 3, 2026, concluding GST litigation regarding alleged wrongful Input Tax Credit. The order imposes no tax, interest, or penalty, reducing the financial implication to nil from the previously estimated ₹2,46,55,446.
*this image is generated using AI for illustrative purposes only.
Praveg Limited has successfully concluded an ongoing Goods and Services Tax (GST) litigation with a nil order from the tax authorities. The Office of the Assistant Commissioner, Division-III, Daman, Vadodara Commissionerate, CBIC, passed an order on June 3, 2026, under Sections 74 and 122 of the Central Goods and Services Tax Act, 2017. This order disposes of the proceedings initiated against the company without imposing any tax demand, interest, penalty, or other liability, thereby nullifying the previously anticipated financial impact.
The dispute originated from a Show Cause Notice issued on July 31, 2025, under Section 74(1) read with Section 122 of the CGST Act, 2017. The notice alleged wrongful availment of Input Tax Credit related to the construction of immovable property, which is considered blocked credit under Section 17(5) of the CGST Act, 2017. The company had previously disclosed a potential financial implication of up to ₹2,46,55,446 in connection with this matter.
The following table outlines the key details of the litigation and its resolution:
| Sr. No. | Particulars | Details |
|---|---|---|
| 1. | Name of the Opposing Party | Office of the Assistant Commissioner, Division-III, Daman, Vadodara Commissionerate, CBIC, State/UT: Dadra and Nagar Haveli and Daman and Diu |
| 2. | Date of initiation of the litigation / dispute | July 31, 2025 (Show Cause Notice issued under Section 74(1) read with Section 122 of the Central Goods and Services Tax Act, 2017 and subsequently made available on the GST Portal through Form DRC-01 dated August 20, 2025) |
| 3. | Status of the litigation / dispute as per last disclosure | Show Cause Notice issued under Section 74(1) read with Section 122 of the Central Goods and Services Tax Act, 2017 alleging wrongful availment of Input Tax Credit relating to construction of immovable property, being blocked credit under Section 17(5) of the CGST Act, 2017. The Company had disclosed a potential financial implication of up to ₹2,46,55,446. |
| 4. | Current status of the litigation / dispute | The Office of the Assistant Commissioner, Division-III, Daman, Vadodara Commissionerate, CBIC, vide Order dated June 03, 2026 passed under Sections 74 and 122 of the Central Goods and Services Tax Act, 2017, has concluded the proceedings initiated pursuant to the aforesaid Show Cause Notice. No tax demand, interest, penalty or any other liability has been imposed on the Company. Accordingly, the financial implication arising from the matter is Nil and the proceedings stand disposed of. |
The disclosure was made to BSE Limited on June 3, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The resolution of this case removes the contingent liability previously reported by the company.
Historical Stock Returns for Praveg
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.43% | -16.14% | -22.13% | -11.31% | -11.31% | -11.31% |
How will the removal of this contingent liability impact Praveg Limited's credit ratings and borrowing costs in the upcoming fiscal year?
Does this favorable order set a precedent that will influence the outcome of other pending GST litigations within the hospitality or infrastructure sectors?
What capital allocation strategies, such as dividend increases or new investments, is Praveg Limited likely to pursue now that the ₹2.46 crore risk is eliminated?
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
