Awfis Space Solutions Limited has disclosed that it received a Show Cause Notice from the Commercial Tax Officer, Nungabakkam, Central-III, Chennai Central, Tamil Nadu. The notice, dated May 20, 2026, was issued in the form of DRC-01 regarding various discrepancies identified in the filed return statement for FY 2023-24.

Details of the Demand

The Show Cause Notice has raised a total demand of INR 6,52,97,283 against the company. This financial demand comprises the principal tax amount along with accrued interest and penalties. The company has acknowledged the receipt of the notice and is currently evaluating the details to prepare its response.

Breakdown of Financial Implications

The table below outlines the specific components of the total demand raised by the tax authorities:

Company Response

In its filing, Awfis Space Solutions stated that it is in the process of submitting a reply to the notice at the earliest. The management intends to address the discrepancies raised by the Commercial Tax Officer. Furthermore, the company has committed to keeping the stock exchanges informed about any material developments arising from this matter.

Awfis Space Solutions has fully resolved its ongoing GST litigation with the Office of the Commercial Tax Officer, Chennai Central, Tamil Nadu, following the receipt of final orders on May 12, 2026. The company disclosed the development to stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in furtherance of its earlier disclosure dated May 4, 2026. With the latest orders, proceedings across all six financial years — FY 2019-20 through FY 2024-25 — now stand concluded, and the company has paid the residual interest liability of INR 55,568 on May 12, 2026.

Background of the Litigation

The litigation was initiated on June 25, 2025, following an inspection conducted at the company's premises on November 6, 2024, during which the GST department sought documents and details related to FY 2019-20 to FY 2024-25. The total amount originally involved in the case was INR 7,61,11,128. The company had been filing replies to notices for each financial year separately, and final orders under Section 74 of the applicable GST Act were issued in the form of DRC-07 in a phased manner.

Orders Received Prior to May 12, 2026

In the earlier phase of the resolution, the GST Department issued final orders dropping demands for three financial years. The details of those orders are as follows:

Accordingly, proceedings for these three years had concluded with no demand or liability subsisting in respect of the total amount of INR 2,96,64,251.

Latest Orders: Remaining Years Concluded

On May 12, 2026, the GST Department issued final orders under Section 74 in the form of DRC-07 for the three remaining financial years. While the principal tax demands for these years were dropped, the department raised limited interest demands with respect to CGST and SGST for each year. The details of the latest orders are as follows:

The total principal demand dropped for FY 2020-21, FY 2021-22, and FY 2022-23 amounts to INR 4,64,16,877, with no other liability subsisting for these years apart from the aggregate interest of INR 55,568.

Full Resolution and Interest Payment

With the conclusion of proceedings for all six financial years, the GST litigation initiated by the Chennai Central authority stands fully resolved. The company confirmed that the aggregate interest of INR 55,568 pertaining to FY 2020-21, FY 2021-22, and FY 2022-23 has been duly paid on May 12, 2026. No further demands or liabilities subsist in connection with the original case spanning FY 2019-20 to FY 2024-25.