Kirloskar Brothers has updated the stock exchanges regarding a notice received under the Andhra Pradesh GST Act, 2017, related to alleged tax arrears. The notice pertains to arrears of Rs. 15,48,02,928/- for the year 2017-18. The company has filed a Writ Petition challenging the demand, and the High Court has granted an interim stay against recovery proceedings.
Background of the APGST Notice
Kirloskar Brothers Limited (KBL) is providing an update concerning a notice received under the Andhra Pradesh GST (APGST) Act, 2017. This relates to alleged tax arrears associated with a transaction undertaken by an unincorporated Joint Venture (JV) named IVRCL-KBL-MEIL (JV) Hyderabad. The JV includes IVRCL Ltd., Kirloskar Brothers, and Megha Engineering & Infrastructure Ltd. (MEIL) and was formed for a project with the Water Resources Department of the Government of Andhra Pradesh.
Details of the Demand
The demand notice, dated August 5, 2025, from the Assistant Commissioner (ST), Dwarakanagar Circle, Vishakhapatnam, claims tax arrears of Rs. 15,48,02,928/- for the year 2017-18. This demand was to be paid within 7 days of the notice’s receipt. Earlier notices, dated January 21, 2025, issued to the majority of the Company’s Directors, erroneously mentioned arrears of Rs. 15,48,06,528/- for the year 2023-24.
Legal Action and Current Status
To address this demand, Kirloskar Brothers filed a Writ Petition on August 12, 2025 (WP/31611/2025), challenging the demand notice with a prayer to set aside the assessment order. The Hon’ble High Court for the State of Andhra Pradesh at Amaravati has granted an interim stay against the recovery proceedings via an order dated August 20, 2025, which was made available to the Company on August 26, 2025. Furthermore, the Directors who received the original demand notices also filed Writ Petitions, under filing No. WP/47631/2025 dated 19.11.2025, challenging the Demand Notices with a prayer to set aside the impugned assessment order.
Opposing Parties in the Litigation
The opposing parties in this litigation are:
- The Deputy Assistant Commissioner of State Tax, Dwarakanagar Circle, Visakhapatnam-l Division.
- The GST Officer, Dwarakanagar Circle, Visakhapatnam-I Division.
- The State of Andhra Pradesh, represented by its Principal Secretary, Revenue Department, Commercial Taxes.
Source: BSE