Kolte-Patil Developers Limited Receives Show Cause Notices Regarding GST Liability in Redevelopment Projects
Kolte-Patil Developers Limited has received Show Cause Notices (SCNs) from the Assistant Commissioner of State Tax, Jurisdiction, Mumbai, Maharashtra, concerning their Goods and Services Tax (GST) liability related to redevelopment projects. The SCNs pertain to matters for which the company had previously intimated GST authorities on June 4, 2026, following the receipt of initial intimations under Section 74/74A of the CGST/MGST Act, 2017.The notices concern the ascertainment of total GST liability amounting to Rs. 103,81,78,300/- (Rupees One Hundred Three Crores Eighty One Lakhs Seventy Eight Thousand Three Hundred only). This demand includes interest and penalties.
The specific issues identified by the tax authority include:
- Purchase of Transferable Development Rights (TDR).
- Construction services provided to society members under the redevelopment projects.
- Development rights procured from society members in lieu of construction services under these projects.
Kolte-Patil Developers Limited stated that the company is currently evaluating all possible legal options regarding the matter. The total penalty levied as per the communication stands at Rs. 46,35,62,192/- (Rupees Forty Six Crores Thirty Five Lakhs Sixty Two Thousand One Hundred Ninety Two only).
The financial and operational assessment by the Company indicates that they do not envisage any relevant impact on their financials or operations.
Key details regarding the GST scrutiny are summarized below:
| Particular | Details |
|---|---|
| Authority | Assistant Commissioner of State Tax, Jurisdiction, Mumbai, Maharashtra |
| Date of Receipt | June 19, 2026 |
| Applicable Period | Financial years from 01-04-2020 to 31-03-2026 |
| Total GST Liability Claimed | Rs. 103,81,78,300/- (including interest and penalties) |
| Penalty Imposed | Rs. 46,35,62,192/-(Rupees Forty Six Crores Thirty Five Lakhs Sixty Two Thousand One Hundred Ninety Two only) |
The company affirmed that the information provided in relation to this matter is true, correct, and complete to the best of its knowledge and belief. Kolte-Patil Developers Limited stated that it has reasonable grounds to defend its position as the levy along with interest and penalty is wholly erroneous and not sustainable in the eyes of law, and it intends to take appropriate legal action within the permissible timelines.
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