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Realty Firm Disputes ₹64 Cr GST Bill
4 Jun
Summary
- Kolte-Patil Developers received a GST demand notice for ₹64.41 crore.
- The demand includes interest and penalties for TDR and redevelopment projects.
- The company believes the GST levy is erroneous and plans legal action.
Kolte-Patil Developers received intimations from the Mumbai State Tax office on June 3, 2026, regarding a GST liability assessment of ₹64.41 crore. This amount encompasses interest and penalties concerning the financial years from April 1, 2020, to March 31, 2026.
The significant GST demand relates to the company's transactions involving Transferable Development Rights (TDR), construction services to society members in redevelopment projects, and development rights acquired from society members in exchange for construction services. A penalty of ₹6.95 crore is also included in the notice.
Kolte-Patil Developers has strongly contested the GST levy, interest, and penalties, characterizing them as "wholly erroneous" and "not sustainable in the eyes of law." The company stated it possesses valid grounds to defend its stance and will initiate appropriate legal actions within the stipulated timelines.
Based on its preliminary evaluation, the developer does not foresee any adverse impact on its financial standing, operational capabilities, or other business activities resulting from this notice. The company remains committed to challenging the assessment through legal channels.
