Kalpataru Projects International522287Tax or GST

GST appeal partly allowed: penalty reduced to INR 0.14 Crores from INR 0.21 Crores

GST appeal partly allowed.

By ScoutQuest · Tue 13 Oct 2026, 4:01 PM IST · 2 min read

The company had earlier informed the exchanges about a GST order covering FY 2017-18 to FY 2019-20.
That order raised a tax demand of INR 1.83 Crores and a penalty of INR 0.21 Crores, along with applicable interest under section 50(3) of the GST Act.
The reasons given in that order were an alleged excess claim of Input Tax Credit (ITC), and a mismatch between ITC availed in GSTR-3B and ITC available in GSTR-2A.
The company shared an appeal before the Hon'ble Principal Commissioner (Appeals) against that order.

The Principal Commissioner (Appeals) has partially allowed the appeal shared by the company, resulting in a reduction of the tax and interest demand.
The penalty has been reduced to INR 0.14 Crores.
The order was received by the company on 12th October, 2026 at about 05:12 P.M. (IST).

It states it has a strong case to defend the matter before the higher appellate authority, as the order was issued without considering the reply and documentary evidence it had submitted.
It will prefer a further appeal against the order within the prescribed timelines.

The penalty in the original order was INR 0.21 Crores; after the appeal was partly allowed, it stands at INR 0.14 Crores. That is the clearest figure in this update.
The tax demand in the original order was INR 1.83 Crores, and the update states the tax and interest demand has been reduced following the appeal.
In the earlier disclosure shared with the exchanges, the company had said the tax and penalty did not have any significant impact on it.

This is a tax-dispute update, not a change in the company's day-to-day business or order book.
The appeal outcome moves in the company's favour so far: the penalty figure is lower, and the tax and interest demand has been reduced.
The company intends to take the matter to a higher appellate authority, so the dispute continues.

ITC (Input Tax Credit): tax already paid on purchases, which a business can set off against the tax it owes on sales.
GSTR-3B: the periodic return in which a business summarises and pays its GST.
GSTR-2A: an auto-generated statement of the tax paid on purchases by a business's suppliers.
When the credit claimed in GSTR-3B does not match what shows in GSTR-2A, the tax department can treat the difference as an excess claim, which is what was alleged here.

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