Dreamfolks Services Faces Rs 1.58 Crore IGST Demand Over ITC Availment on Invoices Issued by GST-Cancelled Supplier:

Dreamfolks Services Limited has received a Demand cum Show Cause Notice (SCN) dated October 09, 2026, passed by the Office of the Commissioner of CGST (Audit), Gurugram Plot No. 24, Mudit Square, Sector-32, Gurugram, Haryana – 122001, under Section 74(1) of the Central Goods and Services Tax (CGST) Act, 2017, read with Section 20 of the Integrated Goods and Services Tax (IGST) Act, 2017, and Rule 142 of the Central Goods and Services Tax (CGST) Rules, 2017.

According to the disclosure dated October 10, 2026, made by the company, the said notice belongs to the financial year 2021-22. The notice has proposed an aggregate demand amounting to Rs 1.58 crore, including a tax of Rs 78.86 lakh and a penalty of Rs 78.86 lakh, along with applicable interest under the applicable provisions of the CGST Act, 2017, and the IGST Act, 2017.

The company had received the notice on October 09, 2026. As per the company, "the SCN pertains to ITC availed on invoices issued by a supplier whose GST registration was cancelled with retrospective effect. However, the supplier had deposited the applicable GST."

The company presently does not expect any immediate material impact of the present action on its financial, operational and business activities. Further, the company is in the process of filing a detailed and appropriate reply to the notice within the prescribed time limit.

Dreamfolks Services Limited has made the aforementioned disclosure vide an Intimation dated October 10, 2026, addressed to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Refer to the official intimation for complete information.