NSE/BSE Codes: NSE Symbol: WEWORK, BSE Scrip Code: 544570
Summary of Key Information:
Nature of Event / Disclosure:
Regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding receipt of a show cause cum demand notice from GST authorities for alleged excess Input Tax Credit (ITC) availment.
Involved Parties / Authorities:
- Issuing Authority: Office of the Principal Commissioner of CGST & CX, Mumbai East
- Specific Officer: Additional Commissioner, In charge of Division IV
Date / Timeline of Event:
- Notice Date: September 29, 2026
- Received Date: September 30, 2026
- Disclosure Date: October 1, 2026
- Period in Question: April 2021 to March 2023
Brief Description of Outcome / Dispute:
The show cause notice alleges excess availment and utilization of Input Tax Credit (ITC) based on discrepancies between ITC claimed in the Annual Return (FORM GSTR-9) and ITC reflected in the audited financial statements/books of accounts, constituting contraventions of the Central Goods and Services Tax (CGST) Act, 2017, Maharashtra Goods and Services Tax (MGST) Act, 2017, and Integrated Goods and Services Tax (IGST) Act, 2017 under Section 74(1).
Impact of Outcome:
Financial Impact:
- Disallowance and recovery of ITC amounting to ₹11,01,28,801/-, comprising:
- IGST: ₹5,95,97,913/-
- CGST: ₹2,52,65,444/-
- SGST: ₹2,52,65,444/-
- Applicable interest under Section 50(3) read with Section 74(1) of the CGST Act, corresponding provisions of MGST Act, and Section 20 of IGST Act.
- Applicable penalty under Section 74(1) read with Section 122(2)(b) of the CGST Act, corresponding provisions of MGST Act, and Section 20 of IGST Act.
Operational / Business / Strategic Impact:
The Company is in the process of submitting a detailed response to the show cause notice within the prescribed statutory timelines, adequately substantiating the legitimate reasons for the reconciliation differences. It does not envisage any material impact on its financials, operations, or other activities at this stage.
Other Implications:
No material disclosures in this section.
Next Steps / Required Actions:
The Company is preparing a detailed response to the show cause notice to be submitted within the statutory timelines, addressing the allegations and providing substantiation for the ITC differences.