Kalpataru Projects International Limited has received a favorable partial ruling from the Appellate Authority regarding a long-standing GST tax dispute. The order pertains to tax liabilities, interest, and penalties for the period spanning 2017-18 to 2021-22. Following the company’s appeal, the tax and interest demands have been reduced, and the penalty component has been successfully lowered to Rs. 56.63 lakhs, down from the original INR 2.64 Crores demand.
Appellate Authority Ruling
On May 11, 2026, Kalpataru Projects International Limited received an order from the Appellate Authority that addresses a previous tax demand. The initial dispute, which surfaced in December 2024, involved allegations regarding the improper availment of education and higher education cess credits, alongside non-payment of taxes related to corporate guarantees and reverse charge mechanisms.
Financial Impact and Resolution
The latest ruling provides a significant reduction in the company’s financial liability. While the original assessment imposed a penalty of INR 2.64 Crores, the revised order has brought the penalty down to Rs. 56.63 lakhs, along with a reduction in the total tax and interest exposure. This development marks a successful step in the company’s efforts to challenge the initial findings of the tax authorities.
Moving Forward
Despite the partial relief granted, the company maintains that it has a strong legal position. Management has expressed its intention to file a further appeal with the higher appellate authority to contest the remaining portions of the order. The company remains committed to utilizing all available legal remedies to resolve the matter fully within the prescribed timelines.
Source: BSE
