Enviro Infra Engineers Limited has successfully resolved GST proceedings initiated against the company, with the Punjab State Tax Department dropping all charges and demands. The company informed stock exchanges on 26.12.2025 about the favorable resolution of the matter.

GST Proceedings Details

The proceedings originated from a Show Cause Notice issued by the State Tax Officer, Taxation Commissionerate, Government of Punjab, with reference number ZD030725009741M. The notice alleged GST discrepancies for the financial year 2021-22 and included substantial financial demands against the company.

Company's Response and Resolution

Enviro Infra Engineers had previously intimated the exchanges about the GST notice on 11.07.2025. Following receipt of the notice, the company submitted a comprehensive response within the prescribed timeline, including detailed clarifications and supporting documents to address the allegations.

The GST Department examined the company's submissions and found them satisfactory. On 02.12.2025, the department issued Order Reference Number ZD0312250025242, formally dropping all proceedings initiated against the company.

Final Outcome

The resolution brings complete closure to the GST matter, with no financial liability for the company. The order confirms that no demand, penalty, or interest is payable by Enviro Infra Engineers Limited in relation to these proceedings.

The company noted that while the order was received on 02.12.2025, it was updated on the GST portal only on 26.12.2025, prompting the delayed intimation to ensure complete confirmation before informing stakeholders.

Enviro Infra Engineers Limited has announced that the GST Department, Gujarat, has dropped proceedings initiated against the company, providing significant relief from potential financial liabilities worth over ₹8.39 crores.

GST Proceedings Background

The company had previously received a Show Cause Notice from the GST Department alleging discrepancies in GST compliance. The notice covered an extended period from the tax year 2018-19 to 2023-24, highlighting the comprehensive nature of the department's review.

The proceedings were initiated under Section 74(5) of the CGST/SGST Act, which deals with cases involving tax evasion or fraud allegations.

Company's Response and Resolution

Enviro Infra Engineers Limited responded proactively to the GST Department's notice by submitting a detailed reply within the prescribed timeline. The company provided requisite clarifications along with comprehensive supporting documents to address the department's concerns.

Following examination of the company's submissions, the GST Department issued an order formally dropping the proceedings against the company.

Financial Impact and Current Status

The favorable order brings complete closure to the GST matter, with significant positive implications for the company:

• No demand payable by the company
• No penalty liability
• No interest charges applicable
• Matter stands fully concluded

This development eliminates a potential financial burden of ₹8,39,89,002 that the company could have faced if the proceedings had resulted in an adverse order. The resolution demonstrates the company's ability to effectively address regulatory concerns through proper documentation and compliance procedures.

Specifically, the company is no longer liable for the alleged GST discrepancies worth ₹5.07 crores, and the penalty and interest totaling ₹3.33 crores have been dropped.

Regulatory Compliance

The company has maintained transparency with stakeholders by promptly informing both the National Stock Exchange of India Limited and BSE Limited about this development under Regulation 30. This follows the company's earlier intimation when it had first disclosed the receipt of the Show Cause Notice from the GST Department.