H.G. Infra Engineering Limited says Karnataka’s Deputy Commissioner of Commercial Taxes, Bengaluru, dropped the entire Rs 94 crore demand and closed the related show-cause notice proceedings with nil demand for tax, interest and penalty. The order was passed on October 5, 2026, and the company disclosed it on October 6.
What the Karnataka order says
In its October 6 exchange disclosure, H.G. Infra reported that the Deputy Commissioner of Commercial Taxes, Bengaluru, Karnataka, passed an order on October 5 dropping the full Rs 94.00 crore demand. The company said the proceedings tied to the show-cause notice were closed with nil demand for tax, interest and penalty. The filing was made under Regulations 30 and 51 of the SEBI Listing Regulations. Company disclosure
The Rs 94 crore figure is the amount of the demand the authority dropped, not a payment to the company or a refund. The reported outcome applies to this notice; it does not establish that every tax matter or potential liability involving H.G. Infra has been resolved.
What the show-cause notice concerned
The order followed a notice disclosed by the company on September 16, 2026, arising from GST audit proceedings for financial year 2022–23. The company’s earlier disclosure identified observations relating to input tax credit and reconciliation of turnover reported in GST returns with its financial statements. It cited Section 73(1) of the CGST Act and the KGST Act as the statutory context. Earlier company disclosure
What is known about the company’s response—and what is not
H.G. Infra said it submitted a detailed reply and that the authority passed the order based on the merits. The company’s disclosure reports the result but does not provide the authority’s detailed reasoning. It therefore does not establish a broader interpretation of GST law or a precedent for other taxpayers.
The result should be understood as the company’s account of the order in its exchange filing. The underlying adjudication order was not included in the publicly described material.
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