Summary of Key Information

Nature of Event / Disclosure:

Regulatory disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding the receipt of an order from the GST Department concerning a resolved tax audit dispute.

Involved Parties / Authorities:

  • The Deputy Commissioner of State Tax, Mazgaon, Mumbai (Authority)
  • Awfis Space Solutions Limited (Company)

Date / Timeline of Event:

  • January 16, 2023: Received initial audit notice (GST ADT-01).
  • January 10, 2024: Company submitted reply to ADT-01.
  • April 18, 2024: Received audit observation notice (GST ADT-02) raising a demand of ₹20.20 million.
  • May 3, 2024: Company submitted reply to ADT-02.
  • May 7, 2024: Received intimation (GST DRC-01A) revising the demand to ₹19.67 million.
  • May 21, 2024: Received formal demand notice (GST DRC-01) for ₹1,98,07,958 (₹19.80 million).
  • June 2024: Company filed an appeal against the order.
  • June 17, 2026: Received the final order on the appeal.
  • June 18, 2026: Date of this disclosure to the exchanges.

Brief Description of Outcome / Dispute:

The dispute concerned an audit of the company's books for the financial year 2019-20. The GST department initially raised a significant demand, which the company appealed. The appeal process has now concluded with a final order that drastically reduces the company's liability.

Impact of Outcome:

Financial Impact:

  • The final order confirms total dues payable of ₹1,61,833 under the IGST, CGST, and SGST Acts.
  • The company had already deposited ₹1,07,556 towards this liability through its electronic cash ledger at the time of filing the appeal.
  • The remaining net financial impact is a liability of ₹54,277, which the company states "shall be paid in due course."
  • The original demand was for ₹19.80 million; the appeal resulted in a reduction of over 99% of the claimed amount. This minimal remaining amount is not material to the company's financials.

Operational / Business / Strategic Impact:

No material operational, business, or strategic impacts are disclosed. The matter is described as resolved with the final order.

Other Implications:

The disclosure concludes a multi-year litigation process, resolving the uncertainty associated with this specific tax audit.

Next Steps / Required Actions:

The company is required to pay the remaining balance of ₹54,277. No other actions or next steps are mentioned.