NSE/BSE Codes: NSE: KALPATARU, BSE: 544423
Summary of Key Information:
Nature of Event / Disclosure:
Disclosure regarding Show Cause-cum Demand Notice received from GST Department by wholly owned subsidiary Kalpataru Properties Limited under Regulation 30 of SEBI Listing Regulations.
Involved Parties / Authorities:
- GST Authority (issuing authority)
- Kalpataru Properties Limited (recipient, wholly owned subsidiary)
- Kalpataru Limited (parent company making disclosure)
Date / Timeline of Event:
- Notice Date: October 15, 2026
- Notice Receipt Date: October 16, 2026 at 3:00 p.m.
- Disclosure Date: October 17, 2026
Brief Description of Outcome / Dispute:
Kalpataru Properties Limited received a Show Cause-Cum Demand Notice from GST Authority calling upon the company to show cause why GST amounting to Rs. 73,85,00,312 (₹73.85 crore) along with applicable interest and penalty should not be demanded and recovered. The notice pertains to FY 2025-26 in respect of certain construction services, issued under Section 74A of CGST Act, 2017 read with corresponding provisions of the MGST Act, 2017.
Impact of Outcome:
Financial Impact:
The notice demands ₹73.85 crore plus applicable interest and penalty. However, the company explicitly states that "This Notice does not have any material financial impact on the operations of the Company."
Operational / Business / Strategic Impact:
No material operational, business, or strategic impact disclosed. The subsidiary is advised that the notice is not sustainable and shall reply appropriately.
Other Implications:
No other implications disclosed beyond the regulatory compliance requirement to disclose the notice.
Next Steps / Required Actions:
Kalpataru Properties Limited will file an appropriate reply to the GST Authority contesting the notice, as they believe the notice is not sustainable.