NSE/BSE Codes: BSE: 539658, NSE: TEAMLEASE

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure pursuant to SEBI LODR Regulation 30 regarding a change in the hearing date for a Writ Petition filed by the company challenging a GST penalty order.

Involved Parties / Authorities:

  • Regulatory Authority: Commissioner of CGST & Central Excise (Appeals-III), Mumbai
  • Adjudicating Authority: Hon'ble High Court of Karnataka
  • Investigating Authority: Directorate General of GST Intelligence

Date / Timeline of Event:

  • January 30, 2026: Order-in-Appeal received from Commissioner of CGST & Central Excise (Appeals-III), Mumbai.
  • May 06, 2026: Initial SEBI intimation filed regarding receipt of the Order-in-Appeal.
  • June 12, 2026: Writ Petition (W.P. No. 18126/2026) filed with the Hon'ble High Court of Karnataka.
  • June 17, 2026: Date of Interim Order received from the High Court (received by company on June 22, 2026).
  • August 29, 2026: Company received intimation that the Writ Petition was set for hearing on October 27, 2026.
  • October 27, 2026: Originally scheduled hearing date (matter was not taken up).
  • November 03, 2026 (late evening): Company made aware of the new hearing date.
  • November 04, 2026 (afternoon): New hearing date informed to the company's secretarial department.
  • November 25, 2026: Next scheduled hearing date.

Brief Description of Outcome / Dispute:

The company is engaged in litigation against an Order-in-Appeal dated January 30, 2026, which upheld a penalty of approximately ₹32.29 Crores under Section 122(1)(ii) read with Section 74 of the CGST Act, 2017. The penalty was imposed following an investigation alleging the issuance of invoices without an underlying supply of services for manpower services rendered during July 2017 to July 2022. The company contends that it duly rendered services, issued valid invoices, processed salaries with statutory deductions, discharged GST, and reported all transactions in returns and financial statements. The company believes the order suffers from jurisdictional and legal infirmities and a violation of natural justice.

Impact of Outcome:

Financial Impact:

A penalty of ₹32.29 Crores has been upheld by the appellate authority. The company states that no tax demand has been raised and there is no material impact on operations at this stage. The matter has been disclosed as a contingent liability (Note 46(f)) in the standalone financial statements for FY25.

Operational / Business / Strategic Impact:

No material impact on operations has been disclosed at this stage. The company remains committed to compliance with applicable laws.

Other Implications:

The dispute involves significant allegations from tax authorities, but the company maintains its position of compliance. The outcome could have implications for the company's standing with GST authorities.

Next Steps / Required Actions:

The next hearing for the Writ Petition (W.P. No. 18126/2026) is scheduled for November 25, 2026, before the Hon'ble High Court of Karnataka. The company shall continue to pursue appropriate legal recourse and has committed to intimating the stock exchanges of any further material developments.