Kirloskar Brothers Ltd directors have challenged Andhra Pradesh GST demand notices worth ₹15.48 crore in the High Court. The dispute involves a joint venture with IVRCL and MEIL for water projects. An interim stay has been granted, with financial implications pending court resolution amid complex GST compliance issues.
Kirloskar Brothers Ltd (KBL) has announced that its directors have filed a writ petition in the Andhra Pradesh High Court challenging GST demand notices totaling ₹15.48 crore. The dispute stems from alleged tax arrears linked to a joint venture project executed with IVRCL Ltd. and Megha Engineering & Infrastructure Ltd. (MEIL) for the state’s Water Resources Department.
Key highlights from the development:
The GST demand pertains to the 2017–18 financial year, under the Andhra Pradesh GST Act, 2017.
The notices were issued against transactions undertaken by the IVRCL-KBL-MEIL joint venture, an unincorporated entity formed for infrastructure projects.
KBL confirmed that the High Court has granted an interim stay on recovery proceedings, providing temporary relief to the company and its directors.
The company stated that the financial implications cannot be determined at this stage, as the matter is sub judice.
Analysts note that this case highlights the complexities of GST compliance in joint ventures, especially in large-scale infrastructure projects.
The outcome of this litigation will be closely watched by stakeholders, as it could set a precedent for similar disputes involving joint ventures and tax authorities.
Sources: ScanX News, InvestyWise, StockInsights