A2Z Infra Engineering Limited announced the demand notice dated 29 February, 2024 for F.Y. 2018-19 the GST Demand- INR 2,95,58,264/-,Penalty - INR 29,55,826/-, Interest on wrongly and excess availed ITC to be calculated at appropriate rate under Section 50(3) of the CGST Act, 2017 read with identical provisions of Sikkim GST Act, 2017 read with Section 20 of the IGST Act, 2017. For F.Y. 2019-20 a. GST Demand- INR 3,14,75,010/- b. Penalty -- INR 31,47,501/- c. Interest on wrongly and excess availed ITC - INR 2,18,85,911 /-. 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.