NSE/BSE Codes: BSE: 532419, Symbol: SMARTLINK

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under Regulation 30 of SEBI LODR Regulations regarding receipt of Show Cause Notice by material subsidiary Digisol Systems Limited under GST laws.

Involved Parties / Authorities:

  • Digisol Systems Limited (Material Subsidiary)
  • State Tax Officer, Maharashtra Goods and Services Tax Department
  • Smartlink Holdings Limited (Listed Entity)

Date / Timeline of Event:

  • Show Cause Notice dated: September 28, 2026
  • Notice received by Digisol: October 05, 2026
  • Intimation to Smartlink Holdings: October 05, 2026
  • Disclosure filed: October 06, 2026
  • Tax period under scrutiny: April 2022 to March 2023

Brief Description of Outcome / Dispute:

The State Tax Officer, Maharashtra GST Department issued a Show Cause Notice to Digisol Systems Limited after scrutiny of GST returns for the period April 2022 to March 2023. The authority identified two main discrepancies:

1. Excess outward tax reported in GSTR-1 compared to GSTR-9, with proposed tax liability of ₹1,66,717.29

2. Excess Input Tax Credit (ITC) availed in GSTR-3B/GSTR-9 that is not confirmed in GSTR-2B/GSTR-2A, with proposed tax liability of ₹1,74,74,992.52

Impact of Outcome:

Financial Impact:

The Show Cause Notice proposes total financial implications of ₹19,41,72,630/- broken down as:

  • GST demand: ₹1,76,69,173/- (IGST: ₹1,75,00,541/-, CGST: ₹84,316/-, SGST: ₹84,316/-)
  • Interest: ₹1,41,33,403/-
  • Penalty: ₹17,70,054/-

There is no immediate financial impact upon receipt of the notice. The final financial impact will be limited to the extent of liability, if any, determined upon conclusion of proceedings.

Operational / Business / Strategic Impact:

No immediate impact on the financial, operational or other activities of Digisol or Smartlink Holdings solely upon receipt of the notice. The company indicates normal operations continue.

Other Implications:

The notice represents a regulatory compliance matter that requires detailed response and justification. Failure to adequately respond could lead to confirmation of the proposed liabilities.

Next Steps / Required Actions:

Digisol is in the process of studying the Show Cause Notice and evaluating its compliance obligations. The subsidiary will file a detailed reply with facts, figures and justifications to the authority within the prescribed timelines.