Shashijit Infraprojects Limited has disclosed receiving a significant GST order from tax authorities, demanding reversal of Input Tax Credit and imposing penalties totaling over ₹25.00 crores. The company made this disclosure under Regulation 30 of the SEBI Listing Regulations on December 31, 2025.

GST Order Details

The company received Order No. 04/GST/DIV-X/R-I/SUPDT/VS/2025-26 dated December 30, 2025, from the Superintendent, CGST & Central Excise, Range-I, Division-X, Daman Commissionerate. The order confirms demand towards reversal of Input Tax Credit amounting to ₹12.93 crores along with an equal penalty amount under Section 74 of the CGST Act, 2017.

Nature of Alleged Violation

According to the GST order, the company allegedly wrongly availed Input Tax Credit aggregating to ₹12.93 crores during FY 2019-20 from suppliers whose GST registrations were cancelled retrospectively. The detailed breakdown of the disputed ITC includes:

The authorities allege this contravenes Section 16(2) of the CGST Act, 2017, making the company liable for recovery of ITC along with interest and penalty under applicable provisions.

Company's Response Strategy

Based on internal assessment, Shashijit Infraprojects is planning to file an appeal before the appropriate appellate authority under Section 107 of the CGST Act, 2017. The company has indicated it will challenge the order through proper legal channels available under the GST framework.

Regulatory Compliance

The disclosure was made in compliance with SEBI Listing Regulations and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The company has also made this information available on its website at www.shashijitinfraprojects.com , ensuring transparency with stakeholders regarding this significant regulatory development.

Shashijit Infraprojects Limited, a construction engineering company, has received a contract termination notice from Toyo Ink India Pvt. Ltd. The termination affects a civil construction project valued at Rs. 834.00 Lakhs (excluding tax), citing delays in meeting work timelines as the primary reason.

Impact on Operations and Financials

According to the company's disclosure, the termination is not expected to have a material impact on Shashijit Infraprojects' overall financial position or operations. However, it's worth noting that Toyo Ink India reserves the right to invoke the Advance Bank Guarantee furnished by Shashijit Infraprojects for the project.

Financial Position Overview

To provide context on the company's current financial standing, here's a snapshot of Shashijit Infraprojects' key balance sheet metrics:

The company's balance sheet shows a slight contraction in total assets over the past year, while equity has increased significantly. The reduction in current liabilities might provide some cushion against potential financial pressures from the contract termination.

Implications and Outlook

While Shashijit Infraprojects maintains that the termination will not materially affect its operations, the incident highlights potential challenges in project execution and timeline management. The company may need to reassess its project management strategies to prevent similar occurrences in the future.

Investors and stakeholders should monitor how the company addresses these challenges and whether there are any long-term implications on its ability to secure and execute future contracts. The potential invocation of the Advance Bank Guarantee by Toyo Ink India could also have short-term financial implications that warrant attention.

As the construction sector continues to face various operational challenges, Shashijit Infraprojects' ability to navigate this setback and maintain its financial stability will be crucial for its future performance and market position.