TeamLease receives tax show cause notice for FY22-23

TeamLease Services Ltd has received a Show Cause Notice (SCN) from the Department of Commercial Taxes, Government of Karnataka, under Section 73(1) of the KGST Act and CGST Act. The notice, dated September 29, 2026, pertains to the period April 2022 to March 2023 (FY 2022-23). The SCN addresses two remaining issues after seven others were dropped. One allegation concerns adjustments in turnover amounting to ₹42,47,67,225 (₹42.48 Crore), with a proposed tax of ₹7,64,58,100 (₹7.65 Crore). The second allegation is for alleged under-reporting of Exempted/Nil-rated/Non-GST outward supplies amounting to ₹21,27,31,466 (₹21.27 Crore), with proposed tax at 18% on the differential. The company reported a 13-day delay in intimation due to an internal communication gap and has since strengthened its reporting process.