Mphasis Limited has reported receiving an order from the Joint Commissioner of Commercial Taxes (Appeals-5), Bengaluru, imposing a penalty of Rs. 1,941,007. The penalty pertains to specific tax compliance matters under the Karnataka Goods and Services Tax Act, 2017. Despite the financial penalty, the company has confirmed that there is no material impact on its financial position, operations, or other activities.
Details of the Tax Order
On May 5, 2026, Mphasis received an order in Form GST APL-04 from the Joint Commissioner of Commercial Taxes (Appeals-5), Bengaluru. The authority has imposed a penalty totaling Rs. 1,941,007 under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017.
Nature of Alleged Violations
The order stems from several specific compliance issues identified by the tax authorities. These include:
- Late reversal of input tax credit under Rule 42 of the Central Goods and Services Tax Act, 2017.
- Non-submission of special economic zone (SEZ) endorsements.
- Discrepancies regarding the determination of place of supply for export transactions.
Impact Assessment
Following a review of the order, Mphasis has formally stated that this development carries no financial or operational impact on the company. The business continues to function normally, and the penalty amount does not pose a risk to the company’s broader activities or long-term financial health.
Source: BSE
