Brigade Enterprises has received a ₹695 million GST demand notice alleging undervaluation of construction services in joint development projects. The company disputes the claim, calling it without merit, and expects no operational impact. Despite regulatory scrutiny, Brigade posted strong Q4 FY25 profits, reflecting resilience in India’s real estate sector.
Brigade Enterprises Ltd, a leading Bengaluru-based real estate developer, has received a Goods and Services Tax (GST) demand notice of ₹695 million from the Directorate General of GST Intelligence. The notice alleges undervaluation of construction services in joint development agreements across multiple projects.
Key highlights from the announcement:
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The demand includes ₹91.8 crore for the Brigade Parkside North project and ₹386.15 crore for other developments.
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Brigade has been given 30 days to respond to the show cause notice.
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The company maintains that the demand “lacks merit” and does not anticipate any material impact on its financial or operational activities.
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Brigade Enterprises recently reported strong earnings, with Q4 FY25 profit rising 19% year-on-year to ₹249 crore, underscoring resilience despite regulatory challenges.
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Analysts suggest that while such tax disputes are common in the real estate sector, they highlight the need for greater clarity in GST treatment of joint development agreements.
This development places Brigade under regulatory scrutiny but also demonstrates its confidence in navigating compliance issues while continuing to deliver growth in India’s competitive property market.
Sources: ScanX News, Deccan Herald