Mphasis Receives GST Penalty Order of Rs. 1,941,007 from Bengaluru Tax Authority
Mphasis Limited received a penalty order of Rs. 1,941,007 from the Joint Commissioner of Commercial Taxes (Appeals-5), Koramangala, Bengaluru, on May 5, 2026. The penalty was imposed in Form GST APL-04 under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017, relating to late reversal of input tax credit, non-submission of SEZ endorsement, and determination of place of supply for export transactions. The company has confirmed that the order carries no impact on its financial, operational, or other activities. The disclosure was made in compliance with Regulation 30 of the SEBI Listing Regulations.
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Mphasis Limited has received a penalty order from the Joint Commissioner of Commercial Taxes (Appeals-5), Koramangala, Bengaluru, imposing a penalty of Rs. 1,941,007. The order, issued in Form GST APL-04 under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017, was received by the company on May 5, 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Clause 20 of Para A of Part A of Schedule III thereof.
Details of the Penalty Order
The following table summarises the key particulars of the penalty order as disclosed by the company:
| Parameter: | Details |
|---|---|
| Issuing Authority: | Joint Commissioner of Commercial Taxes (Appeals-5), Koramangala, Bengaluru |
| Order Form: | GST APL-04 |
| Applicable Provision: | Section 73(9) of the Karnataka Goods and Services Tax Act, 2017 |
| Penalty Amount: | Rs. 1,941,007 |
| Date of Receipt: | May 5, 2026 |
| Financial Impact: | No impact on financial, operational, or other activities |
Nature of Alleged Contraventions
The penalty pertains to the following alleged violations as specified in the order:
- Late reversal of input tax credit under Rule 42 of the Central Goods and Services Tax Act, 2017
- Non-submission of special economic zone endorsement
- Determination of place of supply for export transactions
Company's Assessment of Impact
Mphasis has stated that the penalty order has no impact on its financial, operational, or other activities. The intimation was filed with BSE Limited and the National Stock Exchange of India Limited in compliance with the applicable SEBI listing regulations. The information has also been made available on the company's official website at www.mphasis.com . The disclosure was signed by Mayank Verma, Senior Vice President and Company Secretary of Mphasis Limited.
Historical Stock Returns for Mphasis
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.96% | -2.75% | -4.89% | -19.07% | -7.83% | +19.93% |
Will Mphasis appeal the GST penalty order, and what is the likelihood of a successful challenge given the nature of the alleged contraventions?
Could this penalty signal broader GST compliance scrutiny across India's IT services sector, particularly around input tax credit reversals and SEZ-related transactions?
How might repeated GST disputes or regulatory penalties affect Mphasis's compliance costs and audit processes in the medium term?
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