TeamLease Intimation on Order‑in‑Appeal received from Commissioner of CGST & Central Excise (Appeals‑III), Mumbai
TEAMLEASE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
TeamLease Services Limited has received an Order-in-Appeal dated January 30, 2026 from the Commissioner of CGST & Central Excise (Appeals-III), Mumbai. The order originates from a Directorate General of GST Intelligence investigation alleging the company issued invoices without underlying supply of services for manpower services during July 2017 to July 2022. A penalty of approximately Rs. 32.29 crores has been upheld under Section 122(1)(ii) read with Section 74 of the CGST Act, 2017. No tax demand has been raised and the company says there is no material impact on operations at this stage. The company disputes the order, citing significant jurisdictional and legal infirmities and plans to file a writ petition before the Karnataka High Court challenging the order and seeking a stay on recovery proceedings. A similar income tax re-assessment for FY2019-FY2022 was closed with nil observations.
The Rs. 32.29 crore penalty, while already disclosed as a contingent liability, adds regulatory risk and uncertainty. If the writ petition fails, it could materially affect the company's financial position. Shareholders should monitor the outcome of the upcoming legal challenge.