PSP Projects Limited has received another GST penalty order from tax authorities, as disclosed in a regulatory filing under SEBI Listing Regulations. The company informed stock exchanges BSE and NSE about this latest development on December 20, 2025.

Latest GST Order Details

The new penalty order was issued by the Office of the Deputy Commissioner, Jurisdiction Range-2, Division-1, Gujarat. The order was passed in Form GST DRC-07 under Section 73 of the CGST/GGST Act, 2017 and applicable rules.

Nature of Current Allegations

According to the latest disclosure, the tax authorities have alleged that PSP Projects claimed ineligible Input Tax Credit under Section 17(5) of the CGST/GGST Act, 2017. The specific allegation relates to:

• Tax not being paid on insurance claim received as per provision of Section 17(5) of CGST/GGST Act, 2017
• Ineligible Input Tax Credit claims for the financial year 2021-22

This represents a different set of allegations compared to the previous order, which focused on claims from cancelled, non-genuine, and defaulting taxpayers for FY 2018-19.

Company's Assessment and Response

PSP Projects has assessed that there is no material impact on the company's financial or operational activities due to this latest GST order. The company maintains its position of challenging penalty orders through proper legal channels.

Regulatory Compliance Pattern

With this latest order, PSP Projects has now received GST penalty orders for two different financial years - FY 2018-19 and FY 2021-22. Both orders were issued under the GST DRC-07 format, though under different sections of the GST Act, indicating ongoing scrutiny of the company's GST compliance across multiple years.

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring continued transparency with stakeholders about regulatory developments affecting the company.

PSP Projects Limited has issued a postal ballot notice to shareholders seeking approval for the appointment of new Joint Statutory Auditors. The notice addresses a casual vacancy created by the resignation of the existing auditors.

Auditor Change Details

The company's existing Joint Statutory Auditors, M/s. Prakash B. Sheth & Co., Chartered Accountants, Ahmedabad (Firm Registration No. 108069W), submitted their resignation. The auditors cited their evaluation of resources and infrastructure constraints, considering the company's future projects and expected growth trajectory that would significantly increase operational volume.

New Auditor Profile

M/s. G.K. Choksi & Co. is an established Chartered Accountancy firm founded in the early 1990s, with a workforce of over 200 personnel and a team of 8 partners supported by 72 qualified professionals. The firm serves a diversified clientele including leading corporates, financial institutions, and multinational groups across multiple sectors including Pharmaceuticals, Infrastructure, FMCG, Financial Services, Real Estate, Information Technology, and NBFCs.

E-Voting Process

The postal ballot will be conducted exclusively through remote e-voting, with no physical ballot forms being dispatched to members. The company has engaged National Securities Depository Limited (NSDL) to facilitate the e-voting process.

Scrutinizer Appointment

The Board of Directors has appointed Mr. Chirag Shah, Practicing Company Secretary (Membership No. FCS: 5545, CP No: 3498), and failing him, Mr. Raimeen Maradiya (Membership No.: FCS: 11283, CP No.: 17554), Partners of M/s. Chirag Shah & Associates, as Scrutinizers for conducting the postal ballot process.

Fee Structure and Rationale

The proposed fee for M/s. G.K. Choksi & Co. is ₹15.00 lakhs for the remaining period of quarters III and IV of Financial Year 2025-26, representing an increase from the ₹8.25 lakhs paid to the outgoing auditors for the corresponding period in FY 2024-25. The company attributes this increase to anticipated significant growth in operations and revenue, which will expand the audit scope and require more extensive procedures.