Updater services Limited has informed stock exchanges about receiving a CGST order of ₹21,99,560/- from the Commercial Tax Officer, Chennai, Tamil Nadu. The company disclosed this development under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Order Details and Allegations

The order was issued under Section 74 of the CGST Act, 2017, dated January 23, 2026. The tax authority has alleged wrongful availment of Input Tax Credit (ITC) on insurance expenses, forming the basis for the monetary demand.

Company's Response and Assessment

Updater Services Limited has expressed disagreement with the tax order, stating that it was passed without considering the response they had submitted against the initial notice. The company's management has assessed that the order lacks merit and expects the financial impact to be negligible.

According to the company's disclosure, they are actively exploring all available legal remedies to contest the order. This includes the possibility of filing a writ petition or an appeal before the appropriate appellant authority.

Financial Impact Assessment

Based on the company's internal evaluation, the expected financial impact from this CGST order is nil. The management believes the order is devoid of merits and is confident about their legal position in the matter.

The disclosure was made in compliance with SEBI regulations and was signed by Sandhya Saravanan, Company Secretary and Compliance Officer, on January 24, 2026.

Updater Services has disclosed that its subsidiary, Fusion Foods and Catering Private Limited, has received a tax order worth ₹1.01 crore from the Office of the Assistant Commissioner, Chennai, Tamil Nadu. The order, dated December 29, 2025, has been issued under Section 73 of the CGST Act regarding supplies to Special Economic Zones (SEZs) without payment of tax.

Order Details and Regulatory Action

The tax authority has passed the order under Section 73, citing "Supply to SEZs without payment of tax" as the basis for the action. The company received the order on December 29, 2025, and has provided detailed disclosure under Regulation 30 requirements.

Company's Assessment and Response Strategy

Updater Services has assessed that the order is "devoid of merits" and expects the financial impact to be nil. The holding company, on behalf of its subsidiary Fusion Foods and Catering Private Limited, is actively exploring all legal options including filing a writ or appeal before the appellate authority.

Expected Financial Impact

Despite the substantial monetary value involved, the company maintains that based on its assessment, the expected financial amount impact will be nil. This confidence stems from the company's belief that the order lacks merit and can be successfully challenged through appropriate legal channels.

Legal Strategy and Next Steps

The company has outlined a comprehensive legal response strategy, indicating it will pursue all available legal remedies. This includes potential filing of writs or appeals before the appropriate appellate authority to contest the tax order and protect the subsidiary's interests.