5paisa Capital Limited has received a Goods and Services Tax (GST) order from tax authorities demanding ₹52.10 lakh for alleged excess Input Tax Credit (ITC) claims. The company disclosed this development to stock exchanges on December 17, 2025, in compliance with SEBI listing regulations.

GST Order Details

The Assistant Commissioner of Central Tax, Range ASD-5, South Division-5, Central Tax, Bengaluru South Commissionerate issued the order on December 16, 2025. The order was passed under applicable provisions of the Central Goods and Service Tax Act, 2017, the Karnataka Goods and Service Tax Act, 2017, and the Integrated Goods and Service Tax Act, 2017.

Nature of Alleged Violations

The tax authority has alleged excess and ineligible availment of Input Tax Credit by 5paisa Capital. The specific violations include:

• Mismatch between returns filed and ITC claimed
• Certain expenses treated as blocked credits under the CGST Act, 2017
• Alleged ineligible Input Tax Credit claims during the assessment period

The demand of ₹52.10 lakh includes the principal amount along with applicable interest and penalties as per GST provisions.

Company's Response and Action Plan

5paisa Capital has announced its intention to challenge the GST order through proper legal channels. The company's response strategy includes:

• Filing an appeal against the order within prescribed statutory timelines
• Submitting appropriate clarifications and supporting documentation to authorities
• Maintaining complete records for all transactions during the disputed period

Based on legal advice, the company expressed confidence in substantiating its position before the appellate authorities. 5paisa Capital believes it maintains proper documentation for all transactions and expects to receive relief from the authorities.

Financial and Operational Impact

The company has assessed the current impact of the GST order on its operations. According to the disclosure, there is no material impact on the financial, operational, or other activities of 5paisa Capital at this stage. The company continues to evaluate the order and will take appropriate steps as the appeal process progresses.

5paisa Capital has committed to keeping stock exchanges informed of any material developments in this matter. The company reiterated its commitment to the highest standards of corporate governance and compliance with SEBI listing regulations.

5Paisa Capital Ltd has seen a significant reduction in shareholding by WF Asian Reconnaissance Fund Limited and its concert party Asian Smaller Companies Fund Limited, according to a recent disclosure. The funds reported an 88% decline in their stake through secondary market sales on November 20, 2025.

Stake Reduction Details

The substantial decrease in shareholding marks a notable shift in the ownership structure of 5Paisa Capital. The funds' decision to reduce their position from a previously reported 7.88% holding has been disclosed in compliance with the Securities and Exchange Board of India (SEBI) substantial acquisition regulations.

This move by the two funds could potentially impact the stock's trading dynamics and may draw attention from other investors and market analysts. The specific reasons behind this significant reduction in stake have not been disclosed in the available information.

Investors and market participants may want to monitor 5Paisa Capital's stock performance and any subsequent disclosures that might provide more context to this substantial change in ownership.