Dreamfolks Receives GST Demand cum Show Cause Notice for ₹1.57 Cr

Dreamfolks Services Limited has received a Demand cum Show Cause Notice (SCN) dated November 09, 2026, from the Office of the Commissioner of CGST (Audit), Gurugram. The notice pertains to the financial year 2021-22 and alleges a tax demand of ₹78,86,667 and a proposed penalty of ₹78,86,667, totaling ₹1,57,73,334. The SCN is related to Input Tax Credit (ITC) availed on invoices from a supplier whose GST registration was cancelled retrospectively, although the supplier had deposited the applicable GST. Dreamfolks states that it does not anticipate any immediate material impact on its financials or operations and is preparing to submit a reply within the stipulated timeline.