Ravita Engineering Services Limited faces Rs 2.15 crore GST demand

Ravita Engineering Services Limited faces a Rs 2.15 crore goods and services tax, or GST, show-cause demand and is contesting a Rs 1.11 crore subcontractor payment suit. Ravita Engineering’s disclosed indirect-tax claims total Rs 4.47 crore excluding interest, with the GST notice covering financial years 2019-20 through 2023-24.

What does the Rs 2.15 crore GST demand against Ravita Engineering cover?

The Rs 2.15 crore GST demand concerns several alleged compliance failures identified by the Commissioner of GST & Central Excise (Audit, Raigad). The authority issued the show-cause notice, or SCN, on September 26, 2025, and issued a corrigendum on November 14, 2025. The notice covers five financial years, from 2019-20 to 2023-24, rather than one reporting period.

The allegations listed in the SCN include short payment of tax, incorrect classification of services, and input tax credit, or ITC, claimed in relation to suppliers that had not filed GSTR-3B. GSTR-3B is the GST return through which taxpayers declare tax liabilities and report eligible ITC. The department also alleges non-payment of tax on short receipt of foreign remittance, non-payment under the reverse charge mechanism, or RCM, non-payment of tax on sale of assets, and availment of ineligible ITC.

The prospectus does not report a final order, payment or other outcome on the Rs 2.15 crore notice. Ravita Engineering says it is in the process of replying to the September 2025 SCN and taking necessary steps under applicable law. The disclosure does not give a timetable for the reply, adjudication or any potential resolution.

The notice is one of two indirect-tax claims disclosed against Ravita Engineering. The company’s tax-proceedings table reports no direct-tax claims against the company, its promoters or its directors. It records two indirect-tax claims against Ravita Engineering totalling Rs 4.47 crore, excluding interest, meaning the Rs 2.15 crore SCN represents about 48% of the stated indirect-tax amount. The disclosure does not separately describe the second indirect-tax claim.

Why is a Rs 1.11 crore contractor payment suit pending on the VBSL project?

The Rs 1.11 crore civil suit arises from an alleged unpaid invoice connected with the Versova Bandra Sea Link, or VBSL, project. SKS Infrastructure Projects was appointed by Ravita Engineering as one of its subcontractors for VBSL. Maharashtra State Road Development Corporation Limited, or MSRDC, awarded the VBSL project to Reliance Infra – Astaldi JV, according to the litigation disclosure.

SKS Infrastructure filed Commercial Suit No. 20/2023 before the District and Sessions Court, Belapur, on June 16, 2023. The subcontractor alleges that Ravita Engineering did not make additional payments under an invoice raised in April 2021 for workforce employed. The amount claimed is Rs 1.11 crore, and the disclosure describes it as consideration for that workforce.

Ravita Engineering is actively contesting the claim, and the case was at the arguments stage as of its last stated hearing on September 23, 2026. The disclosure neither accepts the invoice claim nor states a provision, settlement or court finding. The case outcome therefore depends on the court process and any eventual determination, rather than on the amount claimed in the suit.

The payment suit differs from the GST matter in both claimant and mechanism. SKS Infrastructure is a private subcontractor asserting an invoice-related payment claim in court, while the Rs 2.15 crore matter is a tax authority’s SCN alleging GST non-compliance. The disclosures identify separate proceedings and do not describe either matter as a combined tax or trade-payable liability.

How material are the GST demand and payment suit under Ravita Engineering’s policy?

Both the Rs 2.15 crore GST demand and the Rs 1.11 crore contractor claim exceed Ravita Engineering’s stated Rs 68.13 lakh litigation materiality threshold. The company defines material litigation using the lower of 2% of turnover, 2% of net worth, or 5% of the average absolute profit or loss after tax across the last three audited consolidated financial statements. On the figures disclosed, those tests produced Rs 55.27 lakh, Rs 1.99 crore and Rs 68.13 lakh respectively.

The threshold is a disclosure test rather than an estimate of loss or a conclusion that a claim will succeed. Ravita Engineering separately states that a creditor is material when its dues equal or exceed Rs 68.13 lakh. The company uses that level for creditor disclosure, while the GST proceeding and SKS Infrastructure suit remain subject to their respective legal processes.

As at June 30, 2026, Ravita Engineering reported Rs 47.33 crore of total outstanding trade-payable dues to 88 creditors. Of that total, 15 non-micro, small and medium enterprise, or non-MSME, material creditors accounted for Rs 39.77 crore, while 73 other creditors accounted for Rs 7.56 crore. Material-creditor dues therefore represented about 84% of total trade payables, although the supplied disclosure does not identify SKS Infrastructure as one of the 15 material creditors.

Ravita Engineering also reported financial indebtedness of Rs 34.32 crore as at June 30, 2026, including Rs 34.03 crore of short-term borrowings and Rs 29.58 lakh of long-term borrowings. Financial indebtedness is distinct from the Rs 47.33 crore of trade-payable dues and the Rs 4.47 crore of indirect-tax claims. The supplied disclosure does not state that the GST notice or the SKS Infrastructure suit has accelerated, altered or been included in the reported borrowings.

Conclusion

Ravita Engineering’s principal disclosed company-level matters include a Rs 2.15 crore GST SCN and a Rs 1.11 crore subcontractor suit, while total indirect-tax claims stand at Rs 4.47 crore excluding interest. The tax matter covers several alleged GST failures over financial years 2019-20 to 2023-24, whereas the civil case concerns an April 2021 workforce invoice on the VBSL project. Neither disclosure reports a final order, settlement or admission of liability.

The next disclosed developments are Ravita Engineering’s response to the September 26, 2025 GST SCN, as corrected on November 14, 2025, and progress in Commercial Suit No. 20/2023 following the September 23, 2026 hearing. Readers can also watch for details on the second indirect-tax claim, because the tax table gives the combined Rs 4.47 crore amount but does not separately describe that matter.