Kalpataru projects international to appeal against upheld GST penalty

Kalpataru Projects International Limited (KPIL) announced that an appellate authority upheld a previous order from the GST authority. The initial order, received on December 26, 2023, demanded a penalty of INR 3.72 crores, along with an equivalent tax demand and interest. This was due to a mismatch in ITC availed in GSTR-3B and ITC available in GSTR-2A for the fiscal year 2017-18.

KPIL stated that the appellate authority’s order was received on September 11, 2025. The company maintains it has a strong case and plans to file a further appeal against the order, asserting it was issued without considering the company's reply and submitted documentary evidence.

The original demand for INR 3.72 crores in tax and a penalty of INR 3.72 crores, plus interest under Section 50(3) of the Act, was related to discrepancies identified by the Central Goods and Service Tax (CGST) Department. KPIL previously indicated that this demand would not have a significant impact on the company.