Dreamfolks Services LimitedDREAMFOLKSNSE
Dreamfolks receives GST show-cause notice over ₹78.87 lakh input tax credit
As filed · Dreamfolks Services Limited has informed the Exchange that the Company has received a Demand cum Show Cause Notice dated November 09, 2026 from the Office of the Commissioner of CGST (Audit), Gurugram
RegulatoryDeterioratingLowmateriality 42 out of 100
What happened
FactDreamfolks Services received a GST demand-cum-show-cause notice for FY2021-22 concerning input tax credit claimed on invoices from a supplier whose GST registration was retrospectively cancelled. The notice seeks tax of ₹78,86,667 and proposes an equal penalty, totaling ₹1,57,73,334, plus applicable interest; the company is preparing its reply.
Why it matters
CapitSignal interpretationRegulatory action carries direct monetary penalties and can restrict how the business operates until it is resolved.
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Fact- Quantum of penalty and whether it is appealed
- Any restriction placed on operations or licences
- Timeline given by the regulator
Evidence
How CapitSignal classified this
- Reasoning:
- The matter creates a potential tax exposure of ₹1,57,73,334 plus applicable interest if the notice is upheld. Dreamfolks stated that it does not presently expect an immediate material impact on its financials, operations or other activities.
- Matched on:
- the filing's own subject line
- Confidence in the event type:
- 75%