Kalpataru Limited's Subsidiary Receives ₹6.56 Crore CGST Demand Order for FY2018-19
Kalpataru Limited disclosed that its wholly owned subsidiary Kalpataru Properties Thane Private Limited received a CGST demand order of ₹6.56 crores plus interest and penalties for financial year 2018-19. The demand relates to income discrepancies between RERA and GST records, ITC disallowances, and short reversal issues. The subsidiary plans to appeal the order and believes it is not sustainable.
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Kalpataru Limited has informed stock exchanges about a significant tax demand received by its subsidiary, highlighting regulatory challenges in the real estate sector. The company disclosed the development under SEBI listing regulations on December 31, 2025.
CGST Demand Details
Kalpataru Properties Thane Private Limited (KPTPL), a wholly owned subsidiary of Kalpataru Limited, received a demand order from the Joint Commissioner of CGST, Mumbai West on December 31, 2025. The order was issued under section 74 of the CGST Act and pertains to financial year 2018-19.
| Parameter: | Details |
|---|---|
| Tax Demand Amount: | ₹6,55,93,884.00 |
| Additional Charges: | Interest and penalty equivalent to tax amount |
| Order Date: | December 30, 2025 |
| Receipt Date: | December 31, 2025 at 12:05 PM |
| Issuing Authority: | Joint Commissioner of CGST, Mumbai West |
| Subsidiary Name: | Kalpataru Properties Thane Private Limited |
Alleged Violations
The CGST demand order identifies three specific contraventions related to tax compliance and Input Tax Credit (ITC) claims:
| Violation Type: | Details |
|---|---|
| Income Discrepancy: | Difference in income as per RERA Form V vs GST records |
| ITC Disallowance: | Input Tax Credit disallowed due to non-availability of E-way bill |
| ITC Reversal Issue: | Short reversal of ITC as per Rule 42 and 43 of CGST Rules, 2017 |
These violations indicate compliance issues in income reporting and Input Tax Credit management during the financial year 2018-19.
Company's Response Strategy
Kalpataru Properties Thane Private Limited has outlined its response to the demand order, expressing confidence in challenging the allegations. The subsidiary believes the demand is not sustainable and plans to file an appeal with the appropriate Appellate Authority.
| Response Parameter: | Company Position |
|---|---|
| Legal Action: | Appeal to be filed with Appellate Authority |
| Company's View: | Demand not sustainable |
| Financial Impact: | No material impact on parent company |
| Current Status: | Order received, appeal preparation underway |
Financial and Operational Impact
Despite the substantial demand amount of ₹6.56 crores plus interest and penalties, Kalpataru Limited has stated that this order does not have a material financial impact on the company. This assessment suggests the parent company's financial position remains stable despite the subsidiary's tax challenges.
The disclosure was made pursuant to SEBI Listing Regulations and has been simultaneously published on the company's investor relations website, ensuring transparency with stakeholders and regulatory compliance.
