Nature of the Event
Dreamfolks Services Limited has received a favorable order from the GST Appellate Authority setting aside a previous GST demand order. This disclosure is made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Details of the Orders
- Original Demand Order: Dated August 31, 2024, from the Office of the Assistant Commissioner, Division-VI CGST & Central Excise, Mumbai East Commissionerate
- Appellate Order: Dated October 14, 2026, from the Office of the Commissioner of CGST & Central Excise (Appeals-II), Mumbai
- Order Receipt Date: October 14, 2026
Financial Details of Original Demand
The original demand imposed:
- Tax demand: ₹1,35,09,720
- Applicable interest: Amount not specified in disclosure
- Penalty: ₹13,50,972
- Total potential liability: Approximately ₹1.48 crore plus interest
Nature of Alleged Violation
The company was alleged to have taken wrong claim of Input Tax Credit on account of difference in ITC between GSTR-3B & GSTR 2A during the financial year 2019-20.
Outcome and Impact
The Appellate Authority has completely set aside the original demand order. The company has stated that there is no quantifiable financial impact on its financial, operational or other activities as a result of this favorable order.