Azad Engineering Limited Receives Penalty Order Regarding GST
Azad Engineering Limited announced today, March 25, 2026, that it has received communications detailing orders passed by the Joint Commissioner, Office of the Commissioner of Central Tax and GST, Jeedimetla Division, Medchal GST Commissionerate, Hyderabad. These orders pertain to financial years 2019-20 and 2020-21.The company has been levied an aggregate penalty of INR 10,38,280 and INR 1,10,582 under specific sections of the CGST/SGST Act, 2017 and the IGST Act, 2017. The penalty relates to the availment of blocked Input Tax Credit (ITC) and non-payment of GST on other income.
According to the company, the events are not expected to have a material impact on its financial, operational, or other activities. Azad Engineering Limited is currently evaluating options, including filing an appeal against the order, and anticipates a favorable outcome.
| S. No. | Particulars | Details |
|---|---|---|
| I | Name of the Authority | Joint Commissioner, Office of the Commissioner of Central Tax and GST, Jeedimetla Division, Medchal GST Commissionerate, Hyderabad |
| II | Nature and details of the action(s)/order(s) passed | The orders are passed under section 73 read with 122(2)(a) and (b) and 74 read with 122(2)(b) of CGST/SGST Act, 2017 and corresponding provisions of IGST Act,2017. |
| III | Date of receipt of direction/order/communication from the authority | March 24, 2025 |
| IV. | Details of the violation(s)/contravention(s) committed or alleged to be committed | The penalty has been levied on availment of blocked ITC u/s 17(5) and Non-payment of GST on other income. |
| V. | Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible | Company does not envisage any material impact on the financials, operational or other activities of the Company. Company expects a favorable outcome at higher forum. |
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