Afcons Infrastructure has received a GST demand order totaling ₹1.33 Crore. The demand pertains to a proposed reversal of IGST credit availed on imported goods. The company has already paid the IGST via challan and believes the demand is untenable, indicating plans to pursue legal remedies, including filing an appeal. Afcons does not anticipate any significant impact on its financial position or operations as a result of this matter.
GST Demand Order Details
Afcons Infrastructure has received a demand order from the Commissioner of Central Tax Central Goods and Services Tax, Tirupati Division GST Authority. The order, dated November 20, 2025, relates to the issuance of a Demand Order under Section 73(9) of the CGST Act, 2017, read with Section 122(2)(a) of the same act.
Financial Implications
The demand order totals ₹1,32,81,188, comprising an IGST component of ₹1,20,73,807 and a penalty of ₹12,07,381. It concerns the proposed reversal of IGST credit previously claimed by Afcons on imported goods. The company has been charged interest at applicable rates under Section 50(3) of the CGST Act, 2017. Afcons contends this claim is without merit.
Company Response and Outlook
Afcons Infrastructure firmly believes the proposed disallowance of the Input Tax Credit, along with the levied Interest and Penalty, is unsustainable. While the company’s submissions have been recorded, the order does not provide findings addressing these arguments. Afcons intends to undertake appropriate legal remedies, which includes filing an appeal against the order. The company does not anticipate any significant impact on its financial standing, operations, or other business activities because of this matter.
Source: BSE
