Praveg Limited GST liability reduced to ₹20,000

Praveg Limited has secured a favorable outcome in a Goods and Service Tax (GST) litigation, with the Appellate Deputy Commissioner (S.T.), Chengalpattu, substantially allowing its appeal. The authority determined the company's liability at ₹20,000, a substantial reduction from the previously disputed amount of ₹17,83,112. This resolution significantly lowers the potential financial impact on the company's books.

The dispute originated with the Deputy State Tax Office, Roving Squad-V, Chengalpattu Intelligence. Following the initiation of litigation on December 18, 2024, the company had previously disclosed that an appeal was submitted against the order for the set-out disputed amount. The recent order, passed under the IGST Act 2017 on June 05, 2026, concludes this specific phase of the legal proceedings.

Litigation Details

The disclosure was made under Regulation 30 read with sub-para 8 of para B of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The following table outlines the key particulars of the case:

Sr. No.	Particulars	Details
1.	Name of the Opposing Party	Deputy State Tax Office, Roving Squad-V, Chengalpattu Intelligence
2.	Date of initiation of the litigation / dispute	December 18, 2024
3.	Status of the litigation / dispute as per last disclosure	Appeal has been submitted against order for set out of disputed amount of ₹17,83,112/-
4.	Current status of the litigation / dispute	The Appellate Deputy Commissioner (S.T.), Goods and Service Tax, Chengalpattu vide Order dated June 05, 2026 passed under IGST Act 2017, has substantially allowed the Company's appeal and determined the liability at ₹20,000/- only

The final order brings a definitive conclusion to the dispute, capping the financial obligation at a nominal value compared to the initial demand.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.43%	-16.14%	-22.13%	-11.31%	-11.31%	-11.31%

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.