A2Z Infra Engineering Limited has disclosed receiving a significant GST demand notice from tax authorities, totaling ₹7.26 crores including penalties. The company made this disclosure under Regulation 30 of SEBI Listing Regulations on December 12, 2025.

GST Demand Details

The demand notice was issued by the Additional Commissioner (CGST & C.Ex.), Siliguri Commissionerate and received via email on December 12, 2025. The notice pertains to alleged short payment of taxes for the period spanning Financial Year 2018-19 to Financial Year 2022-23.

The demand has been raised under Section 74(1) of the CGST Act, 2017, read with similarly applicable provisions of Sikkim GST Act, 2017. Additionally, interest will be calculated at applicable rates under Section 50 of the CGST Act, 2017 and Sikkim GST Act, 2017.

Company's Response and Assessment

A2Z Infra Engineering has indicated that it plans to challenge the adjudication authority's demand at the appropriate forum in accordance with the law. The company has expressed confidence in achieving a favorable outcome from the appellate authority.

Key aspects of the company's position include:

• Assessment based on prevailing law and recent judgments by various High Courts
• Expectation of favorable outcome given current legal position and appropriate precedents
• No anticipated material impact on financial, operational, or other activities

Financial Impact Assessment

The company has stated that there is no material impact expected from this GST demand on its financial, operations, or other activities. This assessment appears to be based on the company's confidence in successfully challenging the demand through the legal process.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 read with Clause 20 of Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided comprehensive details as required under the SEBI Master Circular dated November 11, 2024.

Next Steps

The company plans to pursue legal remedies available under the law to challenge the GST demand. The matter will likely proceed through the appellate process, where A2Z Infra Engineering expects to present its case based on prevailing legal precedents and recent court judgments.

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.