Tax & Penalty6 May 2026, 08:01 pm
TeamLease Faces ₹32.29 Cr Penalty in GST Case
AI Summary
TeamLease Services Ltd received an order from the Commissioner of CGST & Central Excise (Appeals-III), Mumbai, regarding alleged issuance of invoices without underlying supply of manpower services from July 2017 to July 2022. A penalty of approximately ₹32.29 Crores has been upheld. The company contests the order, citing jurisdictional and legal infirmities, and plans to file a writ petition before the Hon’ble High Court of Karnataka, Bengaluru. The company believes there is no material impact on operations at this stage and the matter has been disclosed as a contingent liability in the standalone financial statements for FY25.
Key Highlights
- TeamLease faces a penalty of approximately ₹32.29 Crores related to GST issues.
- The order arises from alleged invoices without underlying supply of manpower services.
- Company to file writ petition challenging the order in High Court of Karnataka.
- TeamLease believes the order has legal infirmities and violates natural justice principles.
- No tax demand has been raised, and there is no material impact on operations.