Kesar Terminals & Infrastructure Limited has received an official order from the Office of the Commissioner of Central Goods and Services Tax (CGST) - Kutch (Gandhidham) imposing a penalty of ₹4,46,15,929 under Section 74 of the CGST/GGST Act, 2017. The order also directs recovery of the penalty under Section 74(9) of the Central Goods and Services Tax Act, 2017.

The company has disclosed this development to BSE under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR), ensuring compliance with corporate governance and investor communication norms.

Kesar Terminals has stated that it intends to challenge the order legally by filing an appeal, arguing that the GST penalty is not tenable in law. The management has reassured stakeholders that all necessary steps will be taken to protect the company’s interests and ensure compliance with statutory and regulatory requirements.

The penalty arises under the provisions of the Goods and Services Tax (GST) law, which governs indirect taxes levied on the supply of goods and services in India. Section 74 deals with cases of suppression of outward supplies or input tax credits, and penalties can be imposed if authorities find discrepancies in tax filings.

The company plans to contest the penalty through proper legal channels. Kesar Terminals will continue to provide timely updates on the matter, keeping investors, regulators, and stock exchanges informed about the progress of the appeal and any developments that may affect financial reporting or corporate governance.

Analysts note that while GST penalties can impact a company’s cash flow and financial statements, proactive legal action and transparent disclosures are important to maintain investor confidence and regulatory compliance. The company’s decision to appeal reflects a commitment to safeguard shareholder interests and ensure that any disputes are resolved through the legal process.

In conclusion, Kesar Terminals & Infrastructure Limited faces a GST penalty of ₹4.46 crore but is actively taking steps to challenge the order in law. The company will continue to provide updates as the appeal progresses, maintaining transparency with SEBI, BSE, and its investors. This move underscores the company’s commitment to legal recourse and regulatory compliance while protecting the interests of stakeholders.

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