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

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure regarding receipt of Show Cause Notice from Karnataka Commercial Taxes Department under GST laws and subsequent extension granted for filing reply.

Involved Parties / Authorities:

  • Deputy Commissioner of Commercial Taxes (Large Taxpayers Unit)-03, Bengaluru
  • Department of Commercial Taxes, Government of Karnataka
  • BSE Limited
  • National Stock Exchange of India Limited
  • SEBI (Securities and Exchange Board of India)

Date / Timeline of Event:

  • Show Cause Notice dated: September 29, 2026 (received same day)
  • Original reply deadline: October 29, 2026
  • Extension obtained: October 29, 2026
  • New reply deadline: November 24, 2026
  • Disclosure filing dates: October 13, 2026 (13 days delayed) and November 5, 2026 (5 days delayed)

Brief Description of Outcome / Dispute:

The Company received a Show Cause Notice under Section 73(1) of KGST Act and CGST Act for FY 2022-23 (April 2022 to March 2023). Of the nine issues originally raised in Form GST DRC-01A, seven were dropped based on the Company's submissions. The notice pertains to two remaining issues:

1. Adjustments in turnover reported under Table 5O of GSTR-9C amounting to ₹42,47,67,225 - Tax demand of ₹7,64,58,100

2. Alleged under-reporting of exempt/nil rated/Non-GST outward supplies overstated by ₹3,26,83,376 - Tax demand of ₹21,27,31,466

Impact of Outcome:

Financial Impact:

The total financial implication as per the notice is ₹52,76,08,537 (Rupees Fifty-Two Crores Seventy-Six Lakhs Eight Thousand Five Hundred and Thirty-Seven Only), comprising:

  • Tax: ₹28,91,89,566
  • Interest: ₹20,95,00,014 (computed up to date of notice, subject to change)
  • Penalty: ₹2,89,18,957
Operational / Business / Strategic Impact:

The matter remains at the notice stage. The Company is evaluating the notice and will file its reply in Form GST DRC-06. No operational disruption reported.

Other Implications:

The Company acknowledges internal communication gaps between indirect tax and secretarial functions that caused delayed disclosures to stock exchanges. Processes have been strengthened to prevent recurrence.

Next Steps / Required Actions:

  • Company must file detailed reply to the Show Cause Notice on or before November 24, 2026
  • Continued evaluation of the notice and preparation of response
  • Commitment to keep stock exchanges informed of material developments
  • Ongoing compliance with SEBI LODR regulations