Afcons Infrastructure Limited has informed stock exchanges about receiving a GST demand order from the Tirupati Division GST Authority. The disclosure was made under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

GST Demand Order Details

The demand order was issued by the Commissioner of Central Tax Central Goods and Services Tax, Tirupati Division GST Authority under Section 73(9) of the CGST Act, 2017. The company received this order on November 20, 2025.

Financial Implications

The GST demand relates to the proposed reversal of IGST credit availed by the company on import of goods. According to the company's disclosure, the alleged demand involves:

The company noted that the IGST amount in question has already been paid through a TR-6 challan dated February 3, 2022.

Company's Response and Legal Strategy

Afcons Infrastructure has contested the GST authority's order, stating that the proposal for disallowance of Input Tax Credit and levying of interest and penalty is untenable. The company highlighted that while its submissions were recorded, the order fails to provide findings addressing these arguments.

The company plans to pursue appropriate legal remedies, including filing an appeal against the order. Management has stated it does not anticipate any significant impact on the company's financial position, operations, or other activities as a result of this matter.

Disclosure Timeline

The company acknowledged a delay in making this disclosure to the stock exchanges. According to the filing, the delay was unintentional and resulted from inadvertent oversight in disclosing the information within the stipulated timeframe. Afcons Infrastructure has committed to implementing measures to prevent recurrence of such incidents and emphasized its priority on compliance with applicable laws and regulatory requirements.

Regulatory Compliance

The disclosure was made pursuant to SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, along with Regulation 30 of the LODR Regulations. The company's shares are listed on BSE (Scrip Code: 544280) and NSE (Symbol: AFCONS).

Afcons Infrastructure achieved a historic milestone today, marking the first tunnel breakthrough in the City and Industrial Development Corporation's (CIDCO) history. The breakthrough occurred at the Hetawane Water Supply Scheme project at Shaft-4 in Wahal village, Navi Mumbai, under Package-1, representing a significant achievement in India's infrastructure development.

Project Progress and Technical Achievement

Afcons Infrastructure has completed 5.52 km of the 8.70 km treated water tunnel in CIDCO's Water Tunnel Package-1. The company has demonstrated remarkable progress in this challenging infrastructure project and has committed to completing the project six months ahead of schedule.

Despite geological and logistical challenges, the team has set national tunnelling records by adopting innovative practices. The company maintains the highest safety and quality standards throughout the project execution.

Executive Leadership Comments

Krishnamurthy Subramanian, Executive Chairman of Afcons, said, "I congratulate the project team, CIDCO and all those involved for achieving this milestone. Despite geological and logistical challenges, we have set national tunnelling records by adopting innovative practices. We will complete this project six months ahead of schedule while maintaining the highest safety and quality standards."

Vijay Singhal, Vice Chairman & Managing Director of CIDCO, said, "A few days ago, we created history with the first flight taking off from Navi Mumbai International Airport. Today, we have created another historic moment with this first water tunnel breakthrough. It is the first tunnel breakthrough in CIDCO's history and in this project as well."

Project Scope and Impact

The Hetawane Water Supply Scheme represents a comprehensive infrastructure development initiative designed to address Navi Mumbai's growing water demand. The complete project scope includes substantial infrastructure components.

CIDCO has undertaken this project to augment water supply to Navi Mumbai's developing areas and increase supply capacity from 120 million litres per day (MLD) to 270 MLD.

Company Profile

Afcons Infrastructure Limited serves as the flagship infrastructure engineering and construction company of the Shapoorji Pallonji Group, bringing over six decades of experience to complex infrastructure projects. According to the latest ENR survey, the company ranks among the Top 140 international contractors globally, holding the 12th position in Bridges and 14th position in Marine & Ports categories.