G R Infraprojects Subsidiary Loses GST Litigation

Nagaur Mukundgarh Highways Private Limited, a subsidiary of G R Infraprojects Ltd, has had its writ petitions dismissed by the Hon'ble High Court of Judicature for Rajasthan at Jodhpur. The judgment, dated August 17, 2026, and received by the company on August 18, 2026, concerns the Goods and Services Tax (GST) on annuity payments.

What just happened

The subsidiary had challenged the applicability of CBIC Circular No. 150/06/2021-GST dated June 17, 2021. This circular pertains to the levy of GST on annuity payments received under concession agreements.

Why this matters

This dismissal means the subsidiary's challenge to the GST levy on its annuity receipts has failed. The financial implication for this litigation is approximately Rs 69.79 crore.

The backstory

Nagaur Mukundgarh Highways Private Limited is involved in highway projects where it receives annuity payments as part of its concession agreements. The company contested the tax treatment of these payments based on a specific GST circular.

What changes now

The company is currently assessing the High Court's judgment and will decide on further legal recourse, including potential appeals, in consultation with its legal advisors.

Risks to watch

The primary risk is the financial burden of approximately Rs 69.79 crore if the company is required to pay the disputed GST amount, along with potential interest and penalties.

Peer comparison

Litigation over GST applicability on various service contracts and payment structures is common across the infrastructure sector. Companies often face such challenges concerning circular interpretations and tax liabilities.

Context metrics (time-bound)

The aggregate amount involved in the litigation is Rs 69.79 crore. The High Court judgment was passed on August 17, 2026.