Kalpataru Projects International Wins GST Case, ₹1.52 Crore Demand for FY 2019-20 Set Aside

Kalpataru Projects Wins GST Appeal for FY 2019-20

Kalpataru Projects International Limited announced that the Appellate Authority has issued a favorable order, quashing the Goods and Services Tax demand amounting to ₹1.52 crore for the financial year 2019-20. The ruling reduces a contingent liability, though other tax demands remain.

Background to the Dispute

The company received an official order from the GST Authority on 28th March 2026, which centered on demands for tax, interest, and penalties spanning five financial years, specifically from 2019-20 up to 2023-24, concerning the alleged improper availment and utilization of Input Tax Credit (ITC).

Kalpataru Projects asserted that the order was passed without adequate consideration of the documentary evidence and detailed reply previously submitted by the company, and the management believed it possessed a strong case to defend its position.

Appellate Relief and Further Action

The Appellate Authority quashed the ₹1.52 crore demand, along with associated interest and penalty, previously disclosed by the company. This represents a significant partial victory in the company's ongoing tax disputes. Kalpataru Projects intends to pursue a further appeal before the higher appellate authority within prescribed timelines on the remaining disputed demands.

Broader Tax Context

The company has also secured partial relief in a separate GST dispute for FY 2017-18 to FY 2021-22, with the Appellate Authority reducing the penalty to Rs. 56.63 lakhs from the original INR 2.64 Crores demanded by the GST Authority. These successive appellate orders underscore the company's commitment to defending its tax positions through established legal channels.

About Kalpataru

Kalpataru Limited is an integrated real estate development company with over 130+ completed projects across Mumbai, Thane, Panvel, Pune, Hyderabad, Indore, Bengaluru, and Jodhpur. As of 31 December 2024, the company had a total of 73 completed projects in the MMR and Pune, Maharashtra. It is the fifth largest developer in the MCGM area in Maharashtra and the seventh largest developer in Thane, Maharashtra, in terms of units supplied from 2019 to 31 December 2024. The company was listed on 1 July 2025.