Alldigi Tech Limited has disclosed receiving a significant GST assessment order from tax authorities, totaling ₹18.61 crores including penalties for a five-year period. The company received this order on December 31, 2025, and has made the disclosure under regulatory requirements to stock exchanges.

GST Assessment Details

The Office of Commissioner of GST & Central Excise, Chennai, Tamil Nadu issued an assessment order under Section 74 of CGST/TNGST Act, 2017. The order covers multiple GST-related issues identified during an audit for the period from April 2018 to March 2023.

Nature of Violations

The assessment order addresses several GST compliance issues identified during the audit:

• Non-reversal of input tax credit
• Availment of ineligible Input Tax Credit
• Non-reversal of proportionate ITC on credit notes received
• Ineligible availment of ITC on cross-charge services rendered to branch office from head office
• Non-payment of GST under Reverse Charge Mechanism (RCM)
• Non-payment of interest on delayed payment of tax on cross-charge invoices

The demand is primarily related to Input Tax Credit on cross-charge services by the company, which appears to be the main area of dispute with tax authorities.

Company's Response and Legal Strategy

Alldigi Tech Limited has expressed confidence in challenging the assessment order through legal channels. The company believes the demand is prima facie untenable and can be successfully defended through the legal process as defined under the GST Act.

The company plans to file an appeal against the adjustments and disallowances made in the order before the appellate authority or prefer a writ jurisdiction. Management has stated it has reasonable merits in the case and intends to contest the order before higher appellate authorities.

Financial Impact Assessment

According to the company's disclosure, the GST assessment order does not have any significant impact on financial, operational, or other activities of the company. The management maintains confidence in its ability to defend the case through legal processes available under GST regulations.

The company has committed to keeping stock exchanges informed with periodic updates on the matter as it progresses through the legal system. This disclosure was made pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Alldigi Tech Limited has announced the superannuation of its Chief Executive Officer, Mr. Naozer Dalal, effective December 31, 2025. The company informed stock exchanges through a regulatory disclosure filed on December 17, 2025, under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, followed by a detailed press release on the same date.

Executive Transition Details

The company has provided comprehensive details regarding the CEO transition as mandated by regulatory requirements:

Board Statement and Succession Planning

Gurmeet Singh Chahal, Alldigi Director, expressed appreciation for Mr. Dalal's leadership: "On behalf of the Board and the entire Alldigi Tech family, I extend our sincere appreciation to Mr. Naozer Dalal for his leadership and dedication over the years. His contribution has been instrumental in strengthening the Company's operations, governance, and long-term strategic direction."

The company has initiated a formal process to identify Mr. Dalal's successor as part of its ongoing leadership succession planning. The appointment will be announced separately, with details regarding the leadership transition to be communicated to stock exchanges and published on the company's website as required.

Company Operations and Continuity

Alldigi Tech continues to remain fully committed to delivering value to its clients, employees, and shareholders, ensuring continuity and stability across all operations. The company, headquartered in Chennai, has been a pioneer in the Payroll and International BPO spaces and is the leading Payroll Services Provider in India.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of the Listing Regulations. Company Secretary and Compliance Officer Shivani Sharma (ACS-39590) signed the regulatory filing submitted to both BSE Limited and National Stock Exchange of India Limited. The company trades on BSE under scrip code 532633 and on NSE under the symbol ALLDIGI.