Welspun Enterprises receives ₹18 crore GST demand order from Tamil Nadu authority

Infrastructure development company Welspun Enterprises Ltd on Thursday (October 23) has received an order from the state GST appellate authority, Tamil Nadu, upholding a tax demand of ₹9 crore along with

an equivalent penalty of ₹9 crore for FY2018–19.

In a stock exchange filing, the company said the order in Form GST APL-04, issued by the Deputy Commissioner (CT), Trichy, pertains to the alleged availment of ineligible input tax credit on certain transactions, purportedly in violation of Section 16 of the CGST Act, 2017, and the TNGST Act, 2017. The order was received on October 23, 2025.

Also Read: Welspun Enterprises Q4 Results: Profit rises 30% YoY; recommends ₹3 dividend

Welspun Enterprises said the demand, which includes applicable interest under Section 50 of the CGST and TNGST Acts and a penalty under Section 74, is not maintainable. The company plans to file an appeal before the Tribunal against the order and added that it does not expect any material impact on its financial, operational, or other activities.

Last week, Welspun Enterprises Ltd said the company approved a proposal to raise up to ₹1,000 crore through the issuance of convertible warrants. The funds will be raised via a preferential issue on a private placement basis, with each warrant priced at ₹525.

Welspun is an infrastructure development company focusing primarily on transportation, water and wastewater and tunnelling segments. The company also has investments in Oil & Gas exploration. The company has undertaken various water supply projects and over 1,000 kilometres of road projects.

Also Read: Welspun Enterprises gains 2% as subsidiary bags ₹79.29 crore order in Vadodara

Shares of Welspun Enterprises Ltd ended at ₹542.80, down by ₹10.15, or 1.84%, on the BSE.