SAGILITY LIMITED has received a GST demand order of Rs 0.90 crore from the Department of Commercial Taxes, Karnataka under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017. The order covers the period April 2022 to March 2023 and was received on June 3, 2026.
The order was issued by the Deputy Commissioner of Commercial Taxes (Audit-4.10), Bengaluru, the authority responsible for the GST audit for the relevant period. The total demand comprises tax of Rs 0.32 crore, interest of Rs 0.55 crore, and penalty of Rs 0.03 crore.
The GST audit authorities invoked tax on export of services and denied input tax credit on certain credit notes in relation to export of services during the audit period. Sagility believes the demand is not maintainable based on the advice of its tax advisors. Sagility is in the process of filing an appeal before the Joint Commissioner of Commercial Taxes (Appeals), Bengaluru within the timelines prescribed under the Karnataka and Central GST Acts.
The appeal will be filed under the relevant provisions of the Karnataka Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017. Sagility has confirmed that the demand order does not have a material impact on its financials, operations, or other activities.
The disclosure was made to the National Stock Exchange of India and BSE under Regulation 30 of the SEBI Listing Regulations. Sagility has also uploaded the order on its corporate website for reference.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.