Date: October 8, 2026
Regulatory & Legal Update
Nature of Order:
- The company received an order from the Commissioner, Central Goods & Service Tax (Appeals), Noida, Uttar Pradesh.
- The order intimates a revised GST demand of ₹2,23,13,702 and an equivalent penalty of ₹2,23,13,702 under Section 74(9) of the CGST/UPGST Act, 2017.
- This represents a reduction from the original demand order received from the Joint Commissioner (Office of Commissioner of Central Goods & Services Tax), Noida Audit Commissionerate, dated February 3, 2025.
Background of the Case:
- The dispute pertains to the financial year 2017-18.
- The original demand was raised on three grounds:
- Application of reverse charge mechanism on 'road cutting charges' (now referred to as 'Road Restoration charges' in the revised order).
- Availing excess input tax credit in GSTR-3B Return compared to input tax credit as per GSTR-2A (Table 8A of GSTR-9).
- Interest on delayed billing of unbilled revenue.
- The appellate order has set aside the demand related to the availment of excess input tax credit and interest on delayed billing of unbilled revenue. The revised demand is solely on the grounds of 'Road Restoration charges'.
Status and Company's Stance:
- The appellate order was dated September 29, 2026, and was received by the company on October 7, 2026.
- The company's assessment is that the revised demand is "not maintainable."
- The company is evaluating all options, including filing a further appeal with the Goods and Services Tax Appellate Tribunal.
Financial Impact Assessment:
- The company explicitly states that it "did not envisage any relevant impact on financials, operations or other activities of the Company" from this demand order.