Dreamfolks Receives ₹1.7 Cr Tax Show Cause Notice

Dreamfolks Services Ltd has received a Show Cause Notice (SCN) from the Office of the Assistant Commissioner of Central Tax, Gachibowli Division. The notice, dated September 30, 2026, pertains to a tax demand of ₹1,70,51,787 and a penalty of ₹17,05,178. This is related to the difference between Input Tax Credit (ITC) reported in FORM GSTR-3B and ITC reflected in FORM GSTR-2A for the Financial Year 2022-23. The company states it does not foresee any immediate material impact on its financials or operations and is preparing a reply within the stipulated timeline. The total demand, including tax and penalty, amounts to ₹1,87,56,965.