Kalpataru Projects International Wins GST Appeal, Penalty for FY2020-21 Slashed from ₹42.80 Lakh to ₹0.4 Lakh

Appellate Authority Sets Aside ₹42.80 Lakh GST Penalty

Kalpataru Projects International Limited announced that the Appellate Authority has ruled in favor of the company regarding a previous order by the GST Authority, reducing a penalty demanded of ₹42.80 lakh for alleged wrong or excess availment of input tax credit for the fiscal year 2020-21 to ₹0.4 lakh.

About the Dispute

The original penalty order was issued by the State GST Authority, alleging improper availment of input tax credit during FY2020-21. The significant reduction eliminates most of the financial burden on the company.

Kalpataru Projects' Operations

Kalpataru Projects International Limited is one of the largest Engineering and Construction companies listed in India, with a diversified portfolio of projects worldwide in Power Transmission & Distribution (T&D), Buildings & Factories, Water Supply & Irrigation, Railways, Oil & Gas Pipelines, Urban Mobility (Flyovers & Metro Rail), Highways and Airports in over 75+ countries. The company is a major player in the engineering, procurement, and construction (EPC) sector and undertakes large infrastructure projects across power, transmission, railways, and roads.

Broader Tax Context

This FY2020-21 appeal represents one instance in a series of GST-related proceedings involving the company. Companies in the infrastructure sector often navigate complex indirect tax regulations, including GST. The favorable ruling on this specific fiscal year demonstrates the Appellate Authority's acceptance of the company's position on input tax credit treatment for that period.