Kalpataru Projects International Receives Partial GST Relief: Appellate Authority Reduces Penalty to ₹56.63 Lakhs from ₹2.64 Crores

Kalpataru Projects International Receives Partial GST Relief

Kalpataru Projects International has secured partial relief in a GST dispute, with the Appellate Authority reducing the penalty to Rs. 56.63 lakhs from the original INR 2.64 Crores demanded by the GST Authority for FY 2017-18 to FY 2021-22. The order, received on 11th May, 2026, partially accepted the company's reply and documentary evidence.

Significant Reduction in Penalty

The GST Authority reduced the penalty from an initial ₹2.64 crore to ₹56.63 lakh, representing a total reduction of approximately 78.55%. This substantial decrease reflects the Appellate Authority's partial acceptance of the company's position on several key compliance matters.

Issues involved included claims of wrong GST credit availment and non-payment of tax on corporate guarantees. The Appellate Authority's order was issued in partial consideration of the reply and documentary evidences submitted by the company.

Company's Next Steps

Kalpataru Projects intends to pursue a further appeal before the higher appellate authority within prescribed timelines. The company believes that the remaining penalty is also unjustified and aims to achieve a full waiver by contesting the authority's findings in a higher appellate forum.

Context: Kalpataru Projects International's Operations

Kalpataru Projects International Ltd, formerly Kalpataru Power Transmission Ltd, is a major player in the engineering, procurement, and construction (EPC) sector. It undertakes large infrastructure projects across power, transmission, railways, and roads. In the last 90 days, Kalpataru Projects has announced new orders exceeding ₹2,500 crore across its transmission and distribution (T&D) and residential segments.

The Indian EPC and Infrastructure sector has seen an increase in GST-related audit notices and penalty assessments as authorities tighten compliance. Companies like Kalpataru Projects, which operate across multiple states with complex supply chains, are particularly susceptible to interpretive differences in GST laws.