Kalpataru Limited's Subsidiary AREPL Faces Rs 2.52 Crore GST Demand Order

Kalpataru Limited, a prominent real estate and infrastructure company, has disclosed that its subsidiary, Agile Real Estate Private Limited (AREPL), has received a significant GST demand order. The order, issued by the Joint Commissioner of CGST, Mumbai West, demands Rs 2,51,86,746 along with interest and penalty for the short reversal of input tax credit (ITC) in the financial year 2019-20. The order was received on March 30, 2026, at 5:51 p.m.

The GST order pertains to issues related to the input tax credit reversal under Section 74 of the CGST Act, read with corresponding provisions of the MGST Act. The demand includes the principal amount of Rs 2,51,86,746, along with interest and penalty equivalent to the tax amount. The specific details of the order are as follows:

- Tax Demand : Rs 2,51,86,746 - Additional Charges : Interest and penalty equivalent to the tax amount - Issue : Short reversal of input tax credit (ITC) - Financial Year : 2019-20 - Order Date : March 30, 2026 - Receipt Time : March 30, 2026 at 5:51 p.m.

AREPL has outlined its strategy to challenge the GST order through legal channels. The subsidiary plans to file an appeal with the appropriate GST Appellate Authority, expressing confidence in its position. AREPL believes it has a strong case and remains hopeful of a favorable outcome from the appellate process.

Kalpataru Limited has assessed the potential financial impact of this GST order on its overall financial position. The company stated that the order does not have a material financial impact, suggesting that the demand amount, while significant in absolute terms, is manageable within the company's financial framework.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information was simultaneously disseminated on the company's website investor section, ensuring transparency and compliance with regulatory requirements. Company Secretary and Compliance Officer Gajendra Mewara signed the disclosure document on behalf of Kalpataru Limited.

This development highlights the ongoing regulatory scrutiny in the real estate sector, particularly concerning input tax credit compliance. While the immediate financial impact on Kalpataru Limited is deemed manageable, the broader implications for the company and the sector remain to be seen. The company's proactive approach to address the issue through legal means underscores its commitment to regulatory compliance and corporate governance.