A2Z Infra Engineering Limited received demand notice from the Goods and Services Tax Department on 28th March, 2024 for an amount of INR 46,279,657/- including penalties. Further, interest on wrongly and excess availed ITC to be calculated at applicable rate under Section 50 of the CGST Act, 2017. Name of the Authority Office of the Principal Commissioner, CGST & Central Excise, Raipur Chhattisgarh.

Nature and details of the action taken, initiated or order passed: a. GST Demand- INR 42,049,688/- b. Penalty under Section 73(9) of the CGST Act, 2017- INR 4,204,969/- c. Penalty in contravention of Section 39 of the CGST Act, 2017 under Section 125 of the CGST Act, 2017- INR 25,000/- d. Interest on wrongly and excess availed ITC to be calculated at applicable rate under Section 50 of the CGST Act, 2017. Details of the violation/contravention committed or alleged to be committed: Disallowance of Input Tax Credit by the GST Department under Section 16 (4) of CGST Act 2017 in relation to filing of GSTR- 3B returns beyond time period specified. The Company will challenge the order at the appropriate forum in accordance with the law.

Further, based on the Company's assessment, prevailing law and recent judgements passed by various Hon'ble High Courts, the company reasonably expect a favourable outcome from the appellate authority given the current legal position and the appropriate precedents. Hence, there is no material impact of the same on financial, operations or other activities of the Company.