Kalpataru Projects International Limited has been slapped with a penalty by the GST authorities over an ineligible Input Tax Credit (ITC) claimed by one of its service providers. The company disclosed that it paid ₹17.13 lakh to settle the matter, including interest and penalty, as per a filing with the stock exchanges dated July 19, 2025.
The payment was made on July 18, 2025, at around 4:21 PM, following directions from the GST Authority under Section 73 of the Central Goods and Services Tax Act, 2017 and relevant state provisions.
Kalpataru clarified that the ITC in question was availed and utilized by one of its service providers, and the company decided to reverse the credit and settle the amount to avoid further liabilities.
Key details of the penalty:
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Authority: GST Authority
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Reason: Reversal of ineligible ITC availed by a service provider and used to offset output tax liability.
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Amount paid: ₹17.13 lakh (including penalty and interest)
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Date of payment: July 18, 2025
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Impact: The company said the settlement has no material impact on its financials, operations, or business activities.
Kalpataru also stated that it is evaluating further appropriate actions regarding the matter. The company emphasized that the issue was limited to a service provider’s claim and was addressed to mitigate risk.
For official details, refer to the company’s disclosure on the stock exchanges and its website.
