Inspirisys Solutions Limited , a Chennai-based IT services company, has successfully resolved a significant tax dispute as authorities dropped a Rs 5.03 crore GST demand. The company received the final order on December 24, 2024, marking a favorable conclusion to the Input Tax Credit scrutiny that began in 2023.

Background of the Case

The dispute originated from a Show Cause Notice dated September 30, 2023, issued by the Joint Commissioner, Office of the Principal Commissioner of CGST and Central Excise, Chennai - North Commissionerate. The notice questioned an alleged excess Input Tax Credit availed by the company for the financial year 2021-22.

Favorable Resolution

According to the company's regulatory filing, the final order was received through speed post on December 24, 2024, at 1:00 PM IST. The tax authorities decided the matter in favor of Inspirisys Solutions Limited, completely dropping the demand of Rs 502.51 lakhs.

Regulatory Compliance Update

The company has updated stakeholders through a filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This follows their earlier intimation dated September 30, 2024, regarding pending material litigations and disputes.

Financial Impact

The resolution eliminates any potential financial liability that could have impacted the company's balance sheet. Earlier, Inspirisys Solutions had maintained that there were no expected financial implications due to compensation or penalty, a position that has now been vindicated by the favorable outcome.

Market Implications

This positive development removes regulatory uncertainty that had been hanging over the company since 2023. The complete dropping of the GST demand validates the company's tax compliance practices and eliminates potential financial stress from the disputed amount.

Inspirisys Solutions Limited has successfully completed the voluntary liquidation of its wholly owned subsidiary, Inspirisys Solutions Japan KK (ISJKK), marking a significant corporate restructuring move for the company.

Liquidation Timeline

The liquidation process for ISJKK followed a structured timeline:

• Completion Date: July 14, 2025
• Official Registration: July 15, 2025
• Liquidation Certificate Received: August 19, 2025

Official Notification

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Inspirisys Solutions Limited formally notified the National Stock Exchange of India and BSE Limited about the completion of the liquidation process. The company received the ISJKK Liquidation Certificate on August 19, 2025, at 10:45 A.M. IST, issued by the Tokyo Legal Affairs Bureau, Japan.

Background

This development follows the company's earlier intimation dated February 7, 2025, regarding the initiation of the voluntary liquidation process for ISJKK. The completion of this process signifies a strategic move by Inspirisys Solutions Limited to streamline its international operations.

Company Information

Inspirisys Solutions Limited, headquartered in Chennai, Tamil Nadu, is a technology solutions provider. The company is listed on both the National Stock Exchange of India and the Bombay Stock Exchange.

The successful completion of this liquidation process may have implications for Inspirisys Solutions' global strategy and financial structure. Investors and stakeholders are advised to monitor further communications from the company for any potential impacts on its operations or financial performance.