KEC International Faces GST Demand Over ITC Disallowance; Plans to Challenge
KEC International Faces GST Demand Over ITC Disallowance; Plans to Challenge
KEC International Limited has disclosed that it has received an adjudication order passed by the GST Department, Gujarat. The company made this disclosure in line with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, after receiving the order on March 24, 2026.
Background of the Case
The issue relates to the financial year 2019-20 and involves the Input Tax Credit (ITC) disallowance claimed by the company. According to the GST authority, some of the suppliers from whom KEC made purchases did not comply with GST rules. Because of this violation, the input tax credit claimed by the company has been disallowed. As a result, the adjudication order was issued.
Key details of Order
| Company Name | KEC International Limited |
| Authority | GST Authority, Gujarat |
| Financial Year | 2019-20 |
| Date of Receipt of Order | 24th March 2026 |
| Tax Demand | Rs 13,91,638 |
| Penalty | Rs 13,91,638 |
| Action Proposed | Appropriate legal remedies to be pursued |
Financial Impact
The company has mentioned that it does not expect any material financial impact as a result of the order. It believes that the demand is contestable and hence it will take necessary actions to address the matter.
Disclosure and Compliance
The disclosure has been made to both NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as part of the company’s regulatory compliance requirements. The company also indicated that it would undertake suitable legal remedies in accordance with applicable laws.