TeamLease Services Limited has filed a writ petition before the Hon’ble High Court of Karnataka, Bengaluru, challenging an Order-in-Appeal dated January 30, 2026. This order upholds a penalty of approximately ₹32.29 Crores. The company states that while no tax demand has been raised and there is currently no material impact on operations, the matter has been disclosed as a contingent liability. TeamLease is seeking appropriate interim relief and a stay against recovery proceedings.
Legal Challenge Against Tax Order
TeamLease Services Limited has initiated legal proceedings by filing a writ petition with the Hon’ble High Court of Karnataka. This action is in response to an Order-in-Appeal received on January 30, 2026, from the Commissioner of CGST & Central Excise (Appeals-III), Mumbai. The company is challenging the findings of this order.
Penalty and Financial Implications
The Order-in-Appeal has upheld a penalty of approximately ₹32.29 Crores. However, the company has clarified that no tax demand has been raised to date, and there is currently no material impact on operations at this stage. This matter has been disclosed as a contingent liability under Note 46(f) in the company’s standalone financial statements for FY25.
Company’s Stance and Future Actions
TeamLease is seeking appropriate interim relief from the High Court, including a stay against any recovery proceedings related to the penalty. The company reaffirms its commitment to compliance with applicable laws and regulations and will keep the stock exchanges informed of further material developments.
Background of the Case
The order stems from proceedings initiated by the Directorate General of GST Intelligence. The allegations concern the issuance of invoices without underlying supply of services for manpower services rendered by TeamLease during July 2017 to July 2022. The company has maintained that it duly rendered services, issued valid invoices, processed salaries, and discharged applicable taxes, believing the impugned order suffers from significant jurisdictional and legal infirmities.
Source: BSE
