GST demand reduced: revised demand of Rs. 2,23,13,702/- and equal penalty on road restoration charges

GST update: the Commissioner (Appeals), Noida has further reduced the GST demand on the company.

Thu 8 Oct 2026

Revised GST Demand

Rs. 2,23,13,702/-

Penalty

Rs. 2,23,13,702/-

Demands Set Aside

excess input tax credit and interest on unbilled revenue

What was disclosed

The company has informed the exchanges about a GST order passed in connection with an earlier communication dated February 04, 2025, which had intimated a GST demand order received from the Joint Commissioner (Office of Commissioner of Central Goods & Services Tax), Noida Audit Commissionerate, Noida, dated February 03, 2025.

The company states that it had further shared appeals against that order, and that after due consideration the Commissioner (Appeals), Noida, vide its order dated September 29, 2026, received on October 07, 2026, has further reduced the GST demand.

What the revised order contains

• Order for intimation of a revised demand of Rs. 2,23,13,702/- and a penalty of Rs. 2,23,13,702/- under Section 74(9) of the CGST/UPGST Act, 2017 on Road Restoration charges.
• The demand with respect to availment of excess input tax credit in GSTR-3B in comparison to input tax credit as per GSTR-2A (Table 8A of GSTR-9) has been set aside.
• The demand for interest on delayed billing of unbilled revenue has also been set aside.

The authority named in the disclosure is the Commissioner, Central Goods & Service Tax (Appeals), Noida, Uttar Pradesh. The date of receipt of the communication from the authority is stated as 07th October, 2026.

The numbers to note

• Revised demand: Rs. 2,23,13,702/-
• Penalty: Rs. 2,23,13,702/-
• Taken together, the two amounts stated in the order add up to Rs. 4,46,27,404/-.

The order is a revision of an earlier demand, which the company says has been further reduced at the appeals stage.

What period and issues it relates to

For the financial year 2017-18, the authority had raised a GST demand under reverse charge mechanism on road cutting charges, on availing excess input tax credit in the GSTR-3B return in comparison to input tax credit as per GSTR-2A (Table 8A of GSTR-9), and interest on delayed billing of unbilled revenue.

The company's stated position

Based on the company's assessment, the demand is not maintainable, and the company is evaluating all options including update an appeal with the Goods and Services Tax Appellate Tribunal against the demand order. The company states that it did not envisage any relevant impact on financials, operations or other activities of the company.

How to read this

On the face of the disclosure, the development is a reduction of a previously intimated GST demand at the appellate level, along with the setting aside of certain components of that demand. At the same time, a revised demand and an equal amount of penalty on road restoration charges are stated in the order, and the company has said it is evaluating a further appeal before the GST Appellate Tribunal. The company's own stated view is that the demand is not maintainable and that it does not envisage any relevant impact on its financials, operations or other activities.

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