Kalpataru Projects Updates on Tax Dispute Following Appellate Authority Ruling
Kalpataru Projects International Limited has provided updates regarding a tax dispute involving the Goods and Services Tax (GST) Authority. The matter pertains to tax, interest, and penalty demands covering the Financial Years 2017-18 to 2021-22.The dispute originally arose after the Company received an Order from the GST Authority on December 27, 2024. The authority demanded tax, interest (under section 50 of the Act), and penalty for alleged wrong availment of credit of education and higher education cess, non-payment of tax on corporate guarantees, and non-payment of tax under the Reverse Charge Mechanism.
Details of the initial demand were as follows:
| Parameter | Detail |
|---|---|
| Period Covered | Financial Year 2017-18 to 2021-22 |
| Authority | GST Authority |
| Nature of Demand | Tax, interest, and penalty |
| Allegations | Wrong availment of credit of education & higher education cess; non-payment of tax on corporate guarantees; non-payment of tax under Reverse Charge Mechanism. |
| Initial Penalty Demand | INR 2.64 Crores |
Following the initial order, the Company filed an appeal. On May 11, 2026, the Company received an Order from the Hon'ble Appellate Authority. This order partially allowed the appeal filed by the Company, resulting in a reduction of the original tax and interest demand and reducing the penalty amount to Rs. 56.63 lakhs.
The Company confirmed that the Order was issued partially in consideration of the reply and documentary evidence submitted by the Company. Kalpataru Projects stated that it maintains a strong case regarding the matter and intends to file a further appeal against the Appellate Authority's order within the prescribed timelines.
KPIL Stock Price Movement
As of 3:21 PM, shares of Kalpataru Projects International Limited are slipping by 1.33% in live trading, currently sitting at ₹1245.3. The stock is trading on a volume of 124,221 shares, marking a session range between ₹1237.6 and ₹1270.8.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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