Afcons Infrastructure Limited has disclosed the receipt of a Demand Order from the Commissioner of Central Tax, Central Goods and Services Tax, Tirupati Division GST Authority. The order, received on November 20, 2025, pertains to the alleged demand of ₹1,20,73,807 (IGST) for the proposed reversal of IGST credit on the import of goods, along with applicable interest and a penalty of ₹12,07,381 (10% of the demand).

The company, however, contends that the disallowance of Input Tax Credit and the levying of interest and penalty are untenable. Afcons Infrastructure stated that their submissions were not adequately addressed in the order. Consequently, the company intends to pursue appropriate legal remedies, including filing an appeal against the order.

Afcons Infrastructure does not anticipate any significant impact on its financial position, operations, or other activities due to this matter. The company also noted that the delay in disclosing this information was due to an inadvertent oversight and has committed to implementing measures to prevent future occurrences, emphasizing its commitment to regulatory compliance.