KNR Constructions Limited has received a revised tax authority order demanding ₹5.37 crores for alleged GST violations. The company issued a revised intimation regarding this tax demand order from the Office of the Commissioner of Central Tax and Customs (Appeals), Guntur. The revised disclosure was submitted under Regulation 30 of SEBI (LODR) Regulations, 2015, referencing their initial intimation.

Order Details and Receipt Timeline

The tax authority uploaded the order on its website at 6:00 PM. KNR Constructions stated that it has not received the physical order copy through any official means from the department yet. The company became aware of the order through the department's website upload and promptly informed the stock exchanges.

Detailed Breakdown of Alleged Violations

The tax demand comprises multiple components related to GST compliance issues. The company provided a comprehensive breakdown of each alleged violation and associated penalties.

Key Allegations and Impact Assessment

The primary allegation involves excess Input Tax Credit (ITC) taken when comparing GSTR3B versus GSTR2A returns, amounting to ₹1.94 crores. The penalty component forms the largest portion at ₹3.13 crores, covering both alleged delayed return filings and excess ITC claims.

Additional violations include interest charges of ₹23.04 lakhs for alleged delayed filing of returns, ineligible ITC due to suppliers not filing GSTR3B returns, and incorrect normal IGST ITC claims on imports.

Company's Response and Legal Strategy

Based on the merits of the case, KNR Constructions plans to file an appeal with the GST Appellate Tribunal (GSTAT). The company has indicated that the quantum of financial impact will depend on the outcome of the appeal process.

The company has requested the stock exchanges to condone the delay in submitting the complete intimation, explaining that the notification was provided as soon as they became aware of the order through the department's website. The revised disclosure was signed by Company Secretary Haritha Varanasi to ensure full compliance with regulatory requirements.

KNR Constructions Limited has announced a significant divestment deal, executing share purchase agreements with Indus Infra Trust for the sale of its complete shareholding in four road infrastructure projects. The transaction, valued at ₹1,543.19 crore, represents a strategic exit from these special purpose vehicles.

Transaction Details

The share purchase agreements were signed on December 24, covering the company's 100% shareholding, including sub-debt, in four road special purpose vehicles. The entities involved in this divestment are:

• KNR Palani Infra
• KNR Ramagiri Infra
• KNR Guruvayur Infra
• KNR Ramanattukara Infra

Financial Structure

The transaction's financial breakdown demonstrates substantial returns for KNR Constructions:

The company had invested ₹566.83 crore in equity and sub-debt across these four SPVs, making the total proceeds significantly higher than the initial investment.

Regulatory Requirements and Timeline

The divestment is subject to several approvals and conditions that must be fulfilled before completion. These include regulatory approvals, authority clearances, and lender approvals. Additionally, the transaction must comply with share transfer restrictions under the respective concession agreements with the National Highways Authority of India.

The parties expect to complete the entire transaction process by September.

About the Buyer

Indus Infra Trust, the acquiring entity, is a publicly listed infrastructure investment trust. KNR Constructions has clarified that Indus Infra Trust is not part of the promoter group, ensuring the transaction's independence and transparency.

Market Performance

Shares of KNR Constructions closed at ₹172.49 on Wednesday, registering a gain of 7.99% on the National Stock Exchange, reflecting positive market sentiment around the company's strategic moves.