DreamFolks Services Gets Major Relief as Mumbai GST Appellate Authority Sets Aside Rs 1.35 Crore Tax Demand:

DreamFolks Services Limited has received a favourable order from the Office of the Commissioner of CGST and Central Excise (Appeals-II), Mumbai, on October 14, 2026, setting aside a GST demand order issued against the company in August 2024.

The original order, passed by the Assistant Commissioner of CGST and Central Excise, Mumbai East Commissionerate, had raised a GST demand of Rs 1,35,09,720, along with applicable interest and a penalty of Rs 13,50,972.

The tax demand was related to alleged incorrect claims of input tax credit (ITC) due to a mismatch between the figures reported in GSTR-3B and GSTR-2A for the financial year 2019-20.

With the latest order, the GST Appellate Authority has set aside the earlier demand, providing relief to DreamFolks in the matter. The company disclosed the development under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

DreamFolks stated that the financial, operational or other impact of the order was not separately quantified in its disclosure. The company had previously informed the stock exchanges about the matter on September 1, 2024.