KNR Constructions has received a demand from the tax authority for ₹53.67 million. The demand stems from alleged discrepancies related to excess input tax credit (ITC) claims, delayed filing of returns, and ineligible ITC claims. KNR Constructions intends to appeal the order, believing it has a strong case. The appeal is planned to be filed with the Goods and Services Tax Appellate Tribunal (GSTAT).
Tax Demand Received
KNR Constructions has been notified of an order from the Office of the Commissioner of Central Tax and Customs demanding an amount of ₹53,671,475 (₹53.67 million). The details of the order were received on December 24, 2025.
Reasons for Tax Demand
The tax demand is based on the following allegations:
- Allegedly, excess ITC was taken when compared to GSTR3B vs GSTR2A, amounting to ₹19,409,608.
- Interest on alleged delay in filing returns, totaling ₹2,304,099.
- A penalty for alleged delay in filing returns and excess claim of ITC, amounting to ₹31,297,208.
- Alleged ineligibility of ITC due to suppliers not filing GSTR3B, amounting to ₹31,786.
- Alleged wrong claim of Normal IGST ITC taken in import IGSTRs, amounting to ₹6,28,774.
Company’s Response
KNR Constructions plans to appeal the order with the GSTAT. The company believes it has a strong case based on the merits, and the impact on the financial operations cannot be currently ascertained.
Source: BSE
