Mphasis has received a penalty order from the Deputy Commissioner of Commercial Taxes in Bangalore, imposing a penalty of ₹3,290,801 under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017. The company intends to contest the order legally, believing it has reasonable merit to win in higher appellate forums. Mphasis does not expect the quantum of tax demand to have any adverse financial or operational impact.
Penalty Imposed
Mphasis has been issued an order by the Office of the Deputy Commissioner of Commercial Taxes-Large Taxpayer Unit-1, Bangalore, resulting in a penalty of ₹3,290,801. This penalty is imposed under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017, and was received on December 23, 2025.
Reasons for Penalty
The penalty relates to several issues, including non-remittance of GST on Sales Marketing & support services, non-realization of foreign remittance against exports, incorrect availment of ineligible ITC and interest on ITC reversal.
Company Response
Mphasis does not accept the order and intends to contest it legally. The Company believes that it has reasonable merit on its side to win in higher Appellate Fora. Mphasis does not expect the quantum of tax demand with interest and penalties to have any adverse financial or operational impact on the Company.
Delayed Disclosure
The disclosure was delayed due to the time required to verify the facts surrounding the penalty order to ensure accurate and complete disclosure.
Source: BSE