Diligent Media Corporation Limited has informed investors about a significant development regarding a GST demand case that has been ongoing since April 2024. The company faces a substantial tax demand from the Goods and Services Tax Department, with implications for its financial obligations and legal proceedings.

GST Demand Details

The GST Department demand stems from alleged undeclared turnover of Pri-Media Services Pvt. Ltd., an erstwhile entity that was merged with Diligent Media Corporation. The demand covers the period from April 2018 to March 2019.

Recent Developments

Following the initial demand order received in April 2024, Diligent Media Corporation had filed an application for rectification of the demand order before the GST Department. However, the company has now received a response from the GST Department directing compliance with the original demand raised.

The GST Department's rejection of the rectification application represents a setback for the company's efforts to resolve the matter through administrative channels. This development necessitates the company to explore alternative legal remedies.

Company's Response Strategy

In response to the GST Department's directive, Diligent Media Corporation has outlined its next course of action:

• Legal Consultation: The company is currently in the process of seeking legal opinion on the matter
• Appellate Challenge: The company intends to challenge the demand before the appropriate appellate authority
• Due Process: The challenge will be filed in due course following proper legal procedures

Regulatory Compliance

The update has been provided under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III of the Listing Regulations. This disclosure ensures transparency with stakeholders regarding material developments that could impact the company's operations and financial position.

The company secretary and compliance officer, Jyoti Upadhyay, has signed the disclosure document, maintaining the company's commitment to regulatory compliance and investor communication standards.

Diligent media corporation has taken legal action against a significant GST demand by filing a writ petition in the Bombay High Court. The company disclosed this development to stock exchanges on February 25, 2026, under Regulation 30 of the Listing Regulations.

GST Demand Details

The controversy stems from a GST demand order issued by the Office of the Assistant Commissioner of State Tax, Department of Goods and Services Tax, Mumbai. The authority had previously issued this demand order in Form GST DRC-07 on January 14, 2026.

Legal Challenge

The company filed the writ petition on February 24, 2026, challenging the impugned demand order. This legal action was taken based on advice from the company's counsels and supported by judicial precedents from the Hon'ble High Court in similar matters.

The dispute centers around the authority's allegation of non-payment of GST on the assignment of leasehold rights for a leasehold industrial plot situated in Mumbai that was sold by the company.

Regulatory Compliance

The disclosure was made by Company Secretary and Compliance Officer Jyoti Upadhyay, who digitally signed the communication on February 25, 2026. The company has maintained transparency by keeping stock exchanges informed of developments related to this significant tax matter, following proper regulatory disclosure requirements under the Listing Regulations.