TeamLease Services Limited says it received a Karnataka GST show-cause notice proposing ₹52,76,08,537 in tax, interest and penalty for FY2022-23. The notice is not a final adjudicated liability: as of its October 13, 2026 exchange filing, the company said it was evaluating the notice and planned to reply by October 29, 2026. The filing describes two unresolved issues after seven of nine issues raised earlier were dropped.
What TeamLease disclosed
TeamLease Services Limited disclosed on October 13, 2026 that it had received the notice on September 29, 2026. It was issued under Section 73(1) of the Karnataka Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017 by the Deputy Commissioner of Commercial Taxes (Large Taxpayers Unit)-03, Bengaluru. The period covered is April 2022 through March 2023.
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The filing characterizes the notice as a show-cause proceeding. It proposes amounts that the company can respond to; the filing does not establish a final tax order or a court or appellate outcome. The details and figures below are those reported by TeamLease, not independent determinations.
How the proposed ₹52.76 crore is divided
| Component | Amount proposed | Qualification |
|---|---|---|
| Tax | ₹28,91,89,566 | Amount stated in TeamLease’s October 13, 2026 disclosure. |
| Interest | ₹20,95,00,014 | Calculated by the department through the notice date, September 29, 2026, and subject to change, according to the company. |
| Penalty | ₹2,89,18,957 | Amount stated in TeamLease’s October 13, 2026 disclosure. |
| Total | ₹52,76,08,537 | Proposed aggregate of tax, interest and penalty—not an adjudicated amount. |
The component amounts add up to the total reported by the company. The distinction matters: the headline figure is the department’s proposed aggregate at the notice stage, not a confirmed payment obligation.
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The two unresolved issues in the notice
Turnover adjustments reported in GSTR-9C
The notice proposes tax at 18% on turnover adjustments of ₹42,47,67,225 reported in Table 5O of GSTR-9C. TeamLease says the stated ground is that no response was submitted for this item. The filing lists proposed tax of ₹7,64,58,100 for it.
Differences involving exempt, nil-rated or non-GST outward supplies
The filing describes an ₹81,86,92,852 difference between the amount reported in GSTR-3B and the amount in Table 7(b) of GSTR-9C. It also separately refers to exempt supplies of ₹18,15,74,312 for which the notice says documentary evidence was absent. The department proposes tax on the relevant amounts.
TeamLease disputes the computation for the ₹18,15,74,312 item. It says tax was calculated at 18% each under CGST and SGST rather than 9% each, overstating the demand by ₹3,26,83,376 in its view. That is the company’s stated calculation position, not an independently adjudicated finding.
What happened to the earlier issues
Before the show-cause notice, a Form GST DRC-01A intimation raised nine issues, according to TeamLease. The company says the proper officer dropped seven of them after considering its submissions. The September 2026 notice addresses the two remaining issues described above.
TeamLease’s stated next step and disclosure delay
In its October 13 filing, TeamLease said it was evaluating the notice and intended to submit its reply in Form GST DRC-06 on or before October 29, 2026. The filing does not establish whether the reply was ultimately filed or what decision followed, so no later procedural outcome can be inferred from it.
The company also said its exchange intimation was delayed by 13 days because of an inadvertent communication gap between its indirect-tax and secretarial functions, which meant the notice was not escalated to the secretarial function within the prescribed timeline. It said it had strengthened internal reporting. These are statements in the company’s filing, signed by Alaka Chanda, Company Secretary and Compliance Officer.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How this differs from older GST disclosures
TeamLease’s FY2022-23 consolidated financial statements recorded ₹232.36 lakh under prior-period GST matters as of March 31, 2023. The annual-report note describes amounts paid under protest against certain customer-disputed GST demands through that date, as well as other GST notices for various years involving mismatches or pending reconciliations. That historical amount predates the September 2026 notice and is not part of the ₹52.76 crore proposed demand.
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