Kolte-Patil Developers Receives Second GST Liability Intimation of ₹64.42 Crore from Maharashtra Tax Authority
Second GST Liability Intimation Received
Kolte-Patil Developers Limited received a GST liability intimation of Rs 64.42 crore from the Office of the Assistant Commissioner of State Tax, Jurisdiction, Mumbai, Maharashtra on June 3, 2026. The demand, issued under Section 74/74A of the CGST/MGST Act, 2017, covers the financial years from 01-04-2020 to 31-03-2026 and includes interest and penalties. The authority has identified a penalty of Rs 6.95 crore within the total demand.
Scope of the Demand
These include the purchase of Transferable Development Rights (TDR), construction services provided to society members under redevelopment projects, and development rights procured from society members in lieu of construction services. By reaching back to the 2020 fiscal year, the Maharashtra State Tax authority is signaling a more aggressive audit stance toward real estate firms operating under complex joint-development agreements.
Company's Position
Kolte-Patil Developers said the levy of GST along with interest and penalty is "wholly erroneous" and "not sustainable in the eyes of law." The company said it has reasonable grounds to defend its position and will take appropriate legal action within permissible timelines. The developer added that based on its preliminary assessment, it does not envisage any relevant impact on its financials, operations or other business activities.
Regulatory Context
This marks the second GST-related demand against the company in June 2026. Kolte-Patil Developers Limited received a GST demand order worth ₹58,22,58,380 from Maharashtra tax authorities on 06 April 2026, covering a redevelopment project for the period 01-04-2019 to 31-03-2020. The broader issue reflects heightened tax scrutiny on real estate redevelopment structures and could have financial implications for Kolte-Patil's cash flows and compliance costs, while also signaling regulatory focus on GST treatment of complex development rights transactions in the sector.
About Kolte-Patil Developers
Founded nearly 3 decades ago, incorporated in 1991 and guided by the simple, yet profound, philosophy of 'Creation, not construction', Kolte-Patil Developers Ltd is a leading real estate company with dominant presence in the Pune residential market. Headquartered in Pune KPDL is listed on NSE and BSE (BSE: 532924, NSE: KOLTEPATIL). The company has been creating landmarks for 30+ Years and has developed and constructed over 68 projects including residential complexes, IT parks, integrated townships, and commercial complexes, covering a saleable area of ~36 Mn. Sq. Ft. across Pune, Mumbai and Bengaluru.