Purohit Construction Limited has informed BSE Limited that its appeal against a GST demand of Rs 4.16 Cr has been dismissed. The Order-in-Appeal, dated June 23, 2026, was issued by the Commissioner (Appeals), Central GST, Ahmedabad, and upholds the original order passed by the Additional Commissioner, CGST, Ahmedabad South. The company received the communication on July 2, 2026.

The dispute relates to the financial year 2017-18, where authorities alleged wrongful availment of Input Tax Credit (ITC). The upheld order confirms a GST demand of Rs 2.08 Cr along with an equivalent penalty of Rs 2.08 Cr, bringing the total liability to Rs 4.16 Cr.

Details of the Order

The company had initially disclosed the Order-in-Original on January 31, 2025. Following the dismissal of its appeal, Purohit Construction stated it is evaluating the order and exploring further legal remedies available under law. This includes the possibility of filing an appeal before the GST Appellate Tribunal, subject to legal advice.

Financial Impact

Purohit Construction respectfully disagrees with the findings in the Order-in-Appeal. The company stated that, based on its current assessment, it does not envisage any material impact on its financials, operations, or other activities as a result of this order.

Purohit Construction Limited has approved the incorporation of a new subsidiary to expand its business operations in the pre-engineered buildings and infrastructure sectors. The Board of Directors sanctioned the formation of PEB PCL INFRACON LLP during a meeting held on June 23, 2026. The company will hold a 51% stake in the new joint venture entity, which is intended to undertake construction, fabrication, and engineering activities.

The company will contribute ₹51,000, representing 51% of the total capital contribution, and will be entitled to 51% of the profits and losses. Purohit Construction will participate in the LLP through its nominee, Mr. Saumil Narendrabhai Purohit (DIN: 01861110). The transaction is proposed to be undertaken at arm's length, though the LLP may become a related party upon incorporation.

Business Objectives

The newly formed LLP will focus on the business of construction, installation, commissioning, fabrication, and erection of pre-engineered building steel structures. Its scope includes industrial projects, sheds, warehouses, and allied infrastructure. The entity will also engage in turnkey projects, site development, structural engineering works, and civil works, along with maintenance, repair, and modification services.

Regulatory and Financial Details

The incorporation is subject to regulatory approvals and registration by the Ministry of Corporate Affairs (MCA). The required compliances will be governed by the LLP Act, 2008. The company stated that the indicative time period for completion is dependent on these approvals.

Key details of the proposed joint venture are outlined below: