Kalpataru Projects International Limited has received a penalty order of ₹1.51 crores from the GST Authority, as disclosed under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015. The order was received on December 30, 2025, at approximately 1:14 PM IST by a consortium in which the company is a member.

GST Authority Order Details

The GST Authority issued the order under Section 74 of the Central Goods and Services Tax Act, 2017, along with relevant provisions of the State Goods and Services Tax Act, 2017. The penalty pertains to alleged violations during the financial years 2018-19 to 2022-23.

Nature of Alleged Violations

The GST Authority has demanded tax, interest, and penalty from the consortium on specific grounds:

• Excess availment of Input Tax Credit (ITC)
• Short payment of tax during the specified period
• Additional demands for tax and interest components beyond the penalty

Company's Response and Next Steps

Kalpataru Projects International has indicated strong confidence in defending the matter before the Appellate Authority. The company stated that the order was issued without considering the reply and documentary evidence submitted by the consortium during the proceedings.

The consortium plans to file an appeal before the Appellate Authority against the GST order within the prescribed timelines. This approach suggests the company believes it has substantial grounds to challenge the penalty and associated demands.

Financial Impact Assessment

According to the company's disclosure, the penalty of ₹1.51 crores does not have any significant impact on Kalpataru Projects International's operations or financial position. This assessment indicates that while the penalty represents a regulatory challenge, it is not expected to materially affect the company's business activities or financial performance.

The disclosure was signed by Company Secretary Shweta Girotra and filed in compliance with regulatory requirements for transparency regarding legal and regulatory developments affecting listed entities.

Kalpataru Projects International Limited has secured another significant tax relief as the Income Tax Appellate Tribunal (ITAT) Mumbai issued orders reducing tax demands to NIL for Assessment Years 2013-14 to 2015-16 and AY 2017-18. This development adds to the company's earlier success in obtaining relief for AY 2019-20, where a ₹81.53 crore tax demand was cancelled.

Latest ITAT Relief

The company received the latest ITAT order on December 24, 2025, which granted relief in respect of disallowances upheld by the Commissioner of Income Tax (Appeals)-51, Mumbai. The tribunal's decision under section 254 of the Income Tax Act, 1961, has resulted in the complete elimination of tax demands for the specified assessment years.

Previous Tax Relief for AY 2019-20

Earlier, the company had received substantial relief for AY 2019-20 when the Deputy Commissioner of Income Tax, Central Circle-3(3), Mumbai issued an Order Giving Effect (OGE) to the CIT(A) order. This resulted in two significant outcomes:

Comprehensive Tax Resolution Pattern

The latest developments continue Kalpataru Projects' successful track record in tax matters. The company has systematically obtained relief across multiple assessment years:

• AY 2013-14 to AY 2015-16 and AY 2017-18: Tax demands reduced to NIL through latest ITAT order
• AY 2019-20: ₹81.53 crore demand cancelled with ₹7.35 crore refund eligibility
• AY 2020-21: Demand reduced from ₹38.51 crore to ₹25.38 crore through rectification order
• AY 2018-19 to AY 2020-21: Major relief provided through CIT(A) orders

Regulatory Compliance and Timeline

The company has maintained transparent disclosure practices, filing regular updates under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The latest ITAT order was received on December 24, 2025, and promptly disclosed to the stock exchanges.

Strategic Impact

While Kalpataru Projects has achieved favorable outcomes in most tax matters, the company maintains its position to contest any unfavorable decisions before higher appellate authorities where it believes it has strong legal grounds. The elimination of tax demands across multiple assessment years significantly reduces the company's tax-related uncertainties and strengthens its financial position.

The successive tax reliefs, including the complete elimination of demands for AY 2013-14 to 2015-16 and AY 2017-18, along with the earlier ₹81.53 crore relief for AY 2019-20, represent substantial positive developments for Kalpataru Projects International Limited's financial outlook.