Urja Global reports Rs 44.15 crore GST tax demand and penalty

Urja Global Limited (Urja Global) disclosed that a December 24, 2025 goods and services tax order imposed Rs 44.15 crore of tax and an equal Rs 44.15 crore penalty for financial years 2018-19 to 2020-21. The filing therefore identifies Rs 88.30 crore in stated tax and penalty under that order, before any disclosed proceeding outcome.

What is Urja Global's largest disclosed GST order?

Urja Global's largest disclosed goods and services tax, or GST, order is Order No. 294/CGST WEST/GST/SAN/ADC/2025-26, dated December 24, 2025, which levied Rs 44.15 crore in tax under Section 74. The order covers FY 2018-19 to FY 2020-21 and cites short payment of tax, excess availment or utilisation of input tax credit, or ITC, and alleged fake ITC without actual receipt or supply of goods or services.

The Rs 44.15 crore tax amount comprises Rs 13.06 lakh of integrated goods and services tax, Rs 22.01 crore of central goods and services tax and Rs 22.01 crore of state goods and services tax. The filing says an equal Rs 44.15 crore penalty was levied under Section 74, with the same IGST, CGST and SGST split. It also refers to non-payment of late fee among the matters covered by the department's order.

The December 2025 order's tax component is Rs 29.18 crore higher than the Rs 14.97 crore tax recovery in Order No. 91 dated January 28, 2025. Both orders carry penalties equal to their respective tax amounts, but the filing describes different periods or allegations. Urja Global did not disclose whether it had appealed the December 2025 order, unlike several earlier GST matters for which it provided procedural steps.

How do Urja Global's other GST disputes compare?

Urja Global disclosed several other GST demands and notices, with the January 2025 order the next-largest quantified tax-and-penalty matter. Order No. 91 seeks recovery of Rs 14.97 crore of ineligible ITC under Section 74, accompanied by an equal Rs 14.97 crore penalty, and Urja Global said the case was in process. The order also imposed Rs 50,000 on the director and chief financial officer.

For FY 2017-18 to FY 2022-23, Order No. 68 disallowed Rs 3.89 crore of ITC under Section 74 and imposed a matching Rs 3.89 crore penalty on Urja Global. The filing separately says a further Rs 3.89 crore penalty was imposed on a director, while Urja Global filed a writ petition against the order. That period is broader than the December 2025 order's FY 2018-19 to FY 2020-21 coverage.

A separate demand order for FY 2020-21, covering October 2020 to March 2021, imposed penalties of Rs 17.22 crore under Section 122(1)(ii) and Rs 17.02 crore under Section 122(1)(vii) of the CGST Act. Urja Global filed an appeal on November 28, 2024 against that order, received on August 30, 2024. Unlike the Section 74 cases, the filing describes the Rs 34.24 crore combined figure as penalties and does not state a corresponding tax-demand amount.

Which GST notices has Urja Global said it will contest?

Urja Global disclosed appeals, a writ petition or proposed appeal actions for at least four GST matters, while it gave no procedural status for the Rs 44.15 crore December 2025 tax order. Urja Global filed a writ petition against the Rs 3.89 crore ITC disallowance and related company penalty. It also appealed the two FY 2020-21 penalties totalling Rs 34.24 crore on November 28, 2024.

For a demand order of Rs 1.91 crore under Sections 122(1)(ii), 122(1)(vii) and 125 of the CGST Act and Telangana GST Act, Urja Global said it had decided to file an appeal. The filing also says it was in the process of filing an appeal to the Goods and Services Tax Appellate Tribunal, or GSTAT, against a Rs 30.50 lakh Section 73 demand for FY 2018-19 communicated on April 30, 2024.

The disclosure additionally records a May 31, 2024 demand-cum-show-cause notice for Rs 29.87 lakh for FY 2019-20, which it describes as in progress. For FY 2021-22, the GST Department issued an intimation over return discrepancies and requested reversal or payment of Rs 12.45 crore of ITC, plus interest and penalty. That item is an intimation notice rather than a disclosed demand order, and no response status was stated.

What did the auditor identify on input tax credit and tax liabilities?

The auditor said Urja Global had not reversed Rs 16.73 lakh of GST ITC as at September 30, 2026 for dues unpaid to sundry creditors within the stipulated period under the second proviso to Section 16(2) of the CGST Act. According to the review report, non-reversal can result in availment of an incorrect amount of GST credits against GST liability.

The report also records an Income Tax Act demand notice of Rs 12.47 lakh for assessment year 2024-25. Separately, the Income Tax Portal showed outstanding tax liabilities of Rs 6.24 crore for various years as at September 30, 2026, excluding interest levied by the department. These income-tax figures are distinct from the GST orders and cannot be treated as a single confirmed liability with the GST amounts based on the filing.

The auditor observed that due dates for replies to almost all income-tax notices visible under the e-Proceedings tab had lapsed and that no replies had been submitted to those notices. It said the department may proceed on the available record, which could result in adverse orders, increased demands, recovery action, interest, penalties, refund adjustments or appellate proceedings. The auditor said the status of each notice should be reviewed to establish its stage and any corrective action.

Conclusion

Urja Global's disclosure identifies a cluster of GST matters led by the December 2025 Section 74 order, which carries Rs 44.15 crore of tax and an equal penalty. Other proceedings include the Rs 14.97 crore ineligible-ITC recovery and matching penalty, the Rs 3.89 crore ITC disallowance, and FY 2020-21 penalties of Rs 34.24 crore, each with separately disclosed procedural status.

The next points to watch are whether Urja Global files or discloses an appeal against the December 2025 Rs 44.15 crore tax order, the outcome of its writ petition and pending appeals, and progress on the FY 2021-22 Rs 12.45 crore ITC intimation. Urja Global also needs to address the auditor's identified Rs 16.73 lakh credit-reversal issue and the Rs 6.24 crore income-tax liability shown as outstanding at September 30, 2026.