Quess corp Limited has received a GST penalty order of Rs. 39.36 lakhs from tax authorities in Mumbai, the company disclosed in a regulatory filing on March 31, 2025. The order was issued by the Office of Assistant Commissioner of CGST & C.Ex., Division-X, Mumbai East, under Section 74 of the CGST Act, 2017.

Order Details and Timeline

The GST order was originally dated March 18, 2026, and was received by the company on March 30, 2026, at 03:11 P.M. The order was issued in Form GST DRC-07 under the applicable provisions of the CGST Act and related rules.

Nature of Alleged Violations

The penalty order addresses two specific GST compliance issues identified by the tax authorities:

• Short payment of tax: Rs. 2.68 lakhs allegedly under-reported in Form GSTR-3B compared to tax liability disclosed in Form GSTR-1
• Excess Input Tax Credit availment: Rs. 36.67 lakhs excess ITC claimed in Form GSTR-3B versus details reflected in Form GSTR-2A

Company's Response and Impact Assessment

Quess Corp Limited has indicated that the order will not have a material impact on the company's financial position or operational activities. The company has assessed the facts and applicable legal provisions and is preparing to challenge the order through proper legal channels.

The company plans to file an appeal with the Appellate Authority regarding this GST penalty order. This disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Regulatory Compliance

The disclosure follows the requirements under SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company has made this information available on its official website at www.quesscorp.com as part of its transparency obligations to stakeholders.

Quess Corp Limited has completed the allotment of 1,13,847 equity shares under its employee stock ownership plan, marking another milestone in the company's employee benefit initiatives. The allotment was approved by the Nomination and Remuneration Committee on March 24, 2026.

Share Allotment Details

The company allotted equity shares to Restricted Stock Unit (RSU) holders who exercised their options under the Quess Stock Ownership Plan 2020 (QSOP 2020). Each equity share carries a face value of Rs. 10 and ranks pari-passu with the existing equity shares of the company in all respects.

Impact on Share Capital

The allotment has resulted in an increase in the company's paid-up share capital. The change reflects the conversion of employee stock options into equity shares, demonstrating the company's commitment to employee ownership.

Regulatory Compliance

Quess Corp has fulfilled its disclosure obligations under multiple regulatory frameworks. The company submitted the required information under Regulation 10(c) of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, along with the application for listing and trading of the newly allotted shares.

The disclosure was made under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015. The information has been made available on the company's official website at www.quesscorp.com for stakeholder access.

Corporate Communication

The announcement was communicated to both BSE Limited and National Stock Exchange of India Limited through official channels. Company Secretary and Compliance Officer Kundan K Lal signed the disclosure document, ensuring proper corporate governance protocols were followed in the share allotment process.