A2Z Infra Engineering Faces INR 72.46 Crore GST Demand for FY 2019-20

A2Z Infra Engineering Limited , a prominent infrastructure company, has received a substantial Goods and Services Tax (GST) demand order for the financial year 2019-20. The order, issued by the GST Department, imposes penalties and tax recoveries totaling INR 72.46 crore on the company.

Breakdown of the GST Demand

The GST demand order includes the following components:

1. A penalty of INR 61.40 crore under Section 122(1) of the CGST Act, 2017
2. A tax demand of INR 5.53 crore under Section 74(1), with applicable interest
3. An additional penalty of INR 5.53 crore under Sections 74(1) and 122(2)
4. A penalty of INR 0.01 crore under Section 125

Company's Response and Financial Impact

A2Z Infra Engineering has stated that it has already paid INR 20.00 crore through its electronic cash ledger on the GST portal. However, this amount has not been appropriated in the demand order issued by the GST Department.

The company plans to challenge the order at appropriate forums. Based on its assessment of prevailing laws and recent judgments passed by various High Courts, A2Z Infra expects a favorable outcome from the appellate authority.

In its disclosure to the stock exchanges, A2Z Infra Engineering emphasized that there would be no material impact on the company's financial operations or activities as a result of this GST demand order.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The detailed breakdown of the demand order and the company's response have been communicated to both the BSE Limited and the National Stock Exchange of India Limited.

As the matter unfolds, stakeholders will be keenly watching the company's appeal process and its potential implications on A2Z Infra Engineering's financial position.