Key Quantitative Figures
The notice involves a total demand of ₹1,57,73,334 broken down as:
- Tax demand: ₹78,86,667 under IGST
- Proposed penalty: ₹78,86,667
- Applicable interest under Central Goods and Services Tax Act, 2017 and Integrated Goods and Services Tax Act, 2017
Dates of Action
- Notice date: November 09, 2026
- Date of receipt by company: October 9, 2026
- Disclosure date: October 10, 2026
Parties Involved
- Issuing Authority: Office of the Commissioner of CGST (Audit), Gurugram located at Plot No. 24, Mudit Square, Sector-32, Gurugram, Haryana – 122001
- Recipient: Dreamfolks Services Limited
- Company Representative: Harshit Gupta, Company Secretary and Compliance Officer
Details of Alleged Violation
The Show Cause Notice pertains to Input Tax Credit (ITC) availed on invoices issued by a supplier whose GST registration was cancelled with retrospective effect. However, the supplier had deposited the applicable GST.
Company Response and Impact Assessment
The Company does not presently envisage any immediate material impact on its financials, operations or other activities arising from the said matter. The Company is in the process of submitting an appropriate reply to the aforesaid Show Cause Notice within the prescribed timeline.
Additional Information
The disclosure was submitted to both BSE Limited (Scrip Code: 543591) and National Stock Exchange of India Limited (Symbol: DREAMFOLKS). The information is also available on the company's website at www.dreamfolks.com.