Legal and tax
Kalpataru Properties Gets Rs 73.85 Crore GST Show-Cause-Cum-Demand Notice
Kalpataru Properties Limited, a wholly owned subsidiary of Kalpataru Limited, has received a show-cause-cum-demand notice from GST authorities seeking Rs 73.85 crore in GST for FY 2025-26, along with interest and penalty. The parent company says the notice does not have a material financial impact on its operations.
| Recipient | Kalpataru Properties Limited (KPL), wholly owned subsidiary of Kalpataru Limited (NSE: KALPATARU) |
|---|---|
| Issuing authority | GST Authorities (Goods and Services Tax Department) |
| Amount demanded | Rs 73,85,00,312 (about Rs 73.85 crore), plus applicable interest and penalty |
| Notice date | 15 October 2026 |
| Parent informed | 16 October 2026, at about 3:00 p.m. |
| Tax period | FY 2025-26 |
| Legal basis | Section 74A of the CGST Act, 2017, and the parallel provisions of the Maharashtra GST Act, 2017 |
| Parent's stated financial impact | No material financial impact on operations, as stated by Kalpataru Limited |
What happened
Kalpataru Limited told stock exchanges that its wholly owned subsidiary, Kalpataru Properties Limited, had received a Show Cause-cum-Demand Notice from GST authorities. The notice is dated 15 October 2026. The parent received it from the subsidiary on 16 October 2026 at about 3:00 p.m., and the disclosure was reported on 17 October 2026.
The parent filed the intimation with the National Stock Exchange (NSE) and BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also published the information on the investor corner of its official website.
What the notice asks for
The notice asks KPL to show cause why GST of Rs 73,85,00,312 (Rupees Seventy-Three Crores Eighty-Five Lakhs Three Hundred and Twelve), along with applicable interest and penalty, should not be demanded and recovered. It is issued under Section 74A of the CGST Act, 2017, read with the MGST Act, 2017.
The demand covers FY 2025-26 and relates to certain construction services. No specific project, location or unit count is linked to the notice in the reporting.
A show-cause-cum-demand notice is the start of a tax proceeding. It asks the company to explain its position before any demand is decided. It is not an order, and the amount has not been finally determined.
The company's response
Kalpataru Limited said that KPL has been advised the notice is not sustainable. The company intends to file an appropriate reply to the GST Authority. The parent also said the notice does not have any material financial impact on its operations.
Market commentary from Whalesbook reads the company's prompt disclosure as a sign that management sees the matter as a manageable regulatory dispute. That reading is an editorial view and not an official company statement.
Context: the group's recent operations
Kalpataru Limited is headquartered at Santacruz (East), Mumbai. It was incorporated in 1988 and develops premium residential, commercial, retail, integrated township and redevelopment projects, mainly in the Mumbai Metropolitan Region and Pune.
- FY26 pre-sales (provisional) rose 17% year on year to Rs 5,280 crore, and collections rose 34% to Rs 4,960 crore. The company said these figures are provisional and subject to review.
- Pre-sales in Q2 FY27 were Rs 1,258 crore, down 5% from Rs 1,329 crore a year earlier. Collections were Rs 1,189 crore. The operational update was released on 9 October 2026.
- Consolidated net loss for Q1 FY27 was Rs 26.5 crore, against a loss of Rs 49.4 crore a year earlier. Revenue from operations rose 6.5% to Rs 472.2 crore.
- As of 30 June 2026, net debt stood at Rs 8,229 crore, with a net debt-to-equity ratio of 2.0 times.
Other recent GST notices to group companies
Two other GST matters involving Kalpataru subsidiaries have been disclosed in 2026:
- Ananta Landmarks Private Limited: received a GST show cause notice dated 24 September 2026, demanding GST, interest and penalty totalling Rs 14,00,00,892 for FY 2022-23. The notice relates to payments to a municipal corporation on a reverse charge basis and the disallowance of input tax credit. The company says the notice is devoid of merits and will contest it through legal proceedings. The disclosure was made on 25 September 2026.
- Abacus Real Estate Private Limited: the GST Authority appealed a tax order in the company's favour. The original demand was Rs 1,35,66,011 plus interest and penalty for FY18. The Appellate Authority allowed Abacus's appeal in January 2026. The development was disclosed to stock exchanges on 17 September 2026.
What it means for buyers and investors
The notice is a tax matter between the GST Authority and a subsidiary. It concerns the subsidiary's GST liability for construction services, not any particular project. The reporting does not link it to any project, launch, booking or possession schedule.
For investors, the amount is Rs 73.85 crore before any decision on the reply. The parent says it does not expect a material impact on operations or cash flow. Investors who want to follow the matter should track future exchange filings for the subsidiary's reply and any further GST Authority communication.
What happens next
KPL intends to file a reply to the GST Authority. No deadline for that reply has been reported. No hearing date, adjudication date or order date has been announced in the reporting. Any further communication from the GST Authority, or any development in the adjudication process, will determine the final tax position.
Frequently asked questions
What is a show-cause-cum-demand notice?
It is a notice from tax authorities asking a company to explain why a specified tax, interest and penalty should not be demanded and recovered. It starts a proceeding. It is not a final order.
How much is Kalpataru Properties being asked to pay?
The notice seeks GST of Rs 73,85,00,312 for FY 2025-26, along with applicable interest and penalty.
Does the notice affect home buyers in Kalpataru projects?
The notice concerns the subsidiary's GST liability for construction services. The reporting does not link it to any specific project, booking or possession date.
What did Kalpataru Limited say about the financial impact?
The parent company said the notice does not have any material financial impact on its operations. It also said KPL has been advised that the notice is not sustainable and that it intends to file a reply.
What happens next?
KPL plans to file a reply with the GST Authority. The reporting does not give a reply deadline, hearing date or order date.