TeamLease: Intimation on Order-in-Appeal received from Commission of CGST & Central Excise (Appeals-III), Mumbai
TEAMLEASE · price
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TeamLease Services has received an Order-in-Appeal dated January 30, 2026 from the Commissioner of CGST & Central Excise (Appeals-III), Mumbai. The order arises from 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 Rs. 32.29 crores has been upheld under Section 122(1)(ii) read with Section 74 of the CGST Act, 2017. The company denies any wrongdoing, stating it rendered valid services, issued proper invoices, and paid applicable GST. The Income Tax department had previously examined similar records for FY2019-FY2022 and closed re-assessments with NIL observations. TeamLease plans to file a writ petition in the Karnataka High Court challenging the order and seeking a stay on recovery.
The Rs. 32.29 crore penalty is classified as a contingent liability with no immediate financial impact, but it adds regulatory risk. The company's decision to legally challenge the order suggests a prolonged dispute that could affect investor sentiment.