GST Heat on A2Z Infra — Yet Company Expects a Favourable Verdict

Updated: December 27, 2025 00:18

Image Source: Equity Bulls

A2Z Infra Engineering Limited has received a GST demand order dated December 26, 2025, from the Excise & Taxation Officer (State Tax), Gurugram (East), Haryana, for FY 2021-22. The order confirms tax, interest, and penalty aggregating about ₹3.02 crore. A2Z Infra intends to challenge the order and does not foresee any material impact on its financials.

A2Z Infra Engineering Limited has disclosed that it received a demand order from the Goods and Services Tax Department on December 26, 2025, via the GST portal, pertaining to the financial year 2021-22. The order has been issued by the Excise & Taxation Officer (State Tax), Gurugram (East), Haryana, under the Central Goods and Services Tax (CGST) Act, 2017 and corresponding State GST provisions.

The communication confirms a tax demand of ₹1,67,92,540 under Section 73 of the CGST Act, 2017, along with interest of ₹1,21,93,212 under Section 50 and a penalty of ₹77,29,254 under Section 73(9), taking the total exposure to approximately ₹3,02,15,006. The demand relates to alleged violations identified under Section 73(1) of the CGST Act for FY 2021-22.

A2Z Infra has clarified in its disclosure that the adjudication authority’s demand is proposed to be challenged before the appropriate appellate forum in accordance with law. Drawing on prevailing legal positions and recent High Court judgments, the company expects a favourable outcome and has stated that there is no material impact on its financial, operational, or other activities arising from this order.

Notable Updates:

Tax demand confirmed: ₹1,67,92,540 under Section 73 of the CGST Act, 2017, read with corresponding State GST provisions, for FY 2021-22.
Interest component: ₹1,21,93,212 imposed and recoverable under Section 50 of the CGST Act, 2017, along with similar State GST provisions.
Penalty imposed: ₹77,29,254 levied under Section 73(9) of the CGST Act, 2017, along with applicable State GST provisions.
Total GST exposure: Aggregated demand (tax, interest, penalty) of about ₹3.02 crore for the period under dispute.
Nature of violation: Alleged non-compliances and aberrations under Section 73(1) of the CGST Act, 2017, along with related State GST laws.
Company stance: Demand to be contested before the appellate authority, with management reasonably expecting a favourable outcome based on existing jurisprudence.
Impact assessment: Company states there is no material impact on its financial position, operations, or other activities due to this order.

Sources: NSE Corporate Announcement A2Z Infra Engineering Limited Disclosure

Stay Ahead – Explore Now! Akums Subsidiary Gets Rs 53.5 Lakh GST Demand, Terms Order Not Maintainable