Quess Corp Limited has disclosed receipt of an Order in Form GST DRC-07 from the Assistant Commissioner of CGST & C.Ex., Mumbai East. The order, dated March 18, 2026, imposes a penalty of ₹39.36 lakhs. The alleged contravention involves a tax short payment of ₹2.68 lakhs in GSTR-3B versus GSTR-1, coupled with excess Input Tax Credit (ITC) availment. The company maintains there is no material financial impact and plans to file an appeal.
Tax Authority Order Received by Quess Corp
Quess Corp Limited formally notified exchanges on March 31, 2025, regarding an official directive received from the tax authorities. The communication, which arrived on March 30, 2026, at 03:11 P.M., stems from the Office of the Assistant Commissioner of CGST & C.Ex., Division-X, Mumbai East.
Details of the Imposed Order
The action taken was an Order in Form GST DRC-07, dated March 18, 2026, issued under Section 74 of the CGST Act, 2017. This order imposes a total penalty amounting to Rs. 39.36 lakhs on the Company.
Alleged Contraventions
The details outlined in Annexure I specify the grounds for the order. The authority alleges a discrepancy leading to a short payment of tax amounting to Rs. 2.68 lakhs, as reported in Form GSTR-3B compared to the liability declared in Form GSTR-1. Additionally, the order references an excess availment of Input Tax Credit (ITC) of Rs. 36.67 lakhs in Form GSTR-3B when cross-referenced with Form GSTR-2A.
Financial and Operational Impact
Regarding the consequence of this order, the Company assessment indicates that there is no material impact on the Company’s financials or ongoing operations resulting from the said directive. Furthermore, based on their assessment of the facts and prevailing legal precedents, Quess Corp confirms it is in the process of filing an appeal with the Appellate Authority concerning this matter.
Source: BSE
