₹18 Crore GST Demand Issued to Welspun Enterprises by Tamil Nadu Authority

Infrastructure development company Welspun Enterprises Ltd has received a tax demand order of ₹18 crore from the Tamil Nadu GST Appellate Authority for the financial year 2018–19. The order includes a tax demand of ₹9 crore along with an equivalent penalty of ₹9 crore, taking the total demand to ₹18 crore.

Details of the Order

According to a regulatory filing on October 23, 2025, the order was issued by the Deputy Commissioner (CT), Trichy, in Form GST APL-04. It pertains to the alleged availment of ineligible input tax credit on certain transactions, which is said to be in violation of Section 16 of the CGST Act, 2017, and the TNGST Act, 2017.

The demand also includes applicable interest under Section 50 of both Acts and a penalty under Section 74. The company has stated that it plans to file an appeal before the Tribunal against the order, asserting that the demand is not maintainable. It further clarified that the matter will not have any material impact on its financial, operational, or other business activities.

Company’s Recent Fundraising Move

Just last week, the company’s board approved a plan to raise up to ₹1,000 crore through the issuance of convertible warrants on a preferential basis. Each warrant is priced at ₹525, and the funds are expected to support future growth initiatives across its business segments.

This move highlights the company’s strategy to strengthen its balance sheet and ensure liquidity for ongoing and upcoming projects in the infrastructure sector.

Business Overview and Market Performance

Welspun Enterprises operates primarily in the infrastructure sector, with a focus on transportation, water, wastewater, and tunnelling projects. The company also has investments in oil and gas exploration, adding to its diversified portfolio. Part of the USD 2.7 billion Welspun Group, the company works under the Hybrid Annuity Model (HAM) and also undertakes projects in the BOT-Toll and EPC space.

As of 11:46 AM on October 24, 2025, Welspun Enterprises share price stood at ₹543, down 0.10% on the BSE. The company has a market capitalisation of ₹7,516 crore, and is listed under the tickers BSE: 532553 and NSE: WELENT. The stock has a 52-week high of ₹664 and a low of ₹400, with a P/E ratio of 21.6. It offers a dividend yield of 0.54%, and maintains a book value of ₹184.

Read More:Welspun Enterprises Shares Rose Over 6 Percent as Board Approves ₹1,000 Crore Fundraise Through Warrants

Conclusion

The GST demand order marks a regulatory challenge for Welspun Enterprises, but the company’s decision to appeal and its stable financials indicate resilience. With ongoing infrastructure projects and a recent ₹1,000 crore fundraise plan, the company remains focused on strengthening its operations and maintaining growth momentum in the infrastructure sector.

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