Diligent Media Corporation Limited has received a GST Demand Order from the Office of the Assistant Commissioner of State Tax, Mumbai. The order, received by the company on January 13, 2026, pertains to the purported non-payment of GST on the assignment of leasehold rights for an industrial plot sold by the company in Mumbai.

The Goods and Services Tax Department contends that this transfer constitutes a taxable supply of services under GST laws. Consequently, a demand has been raised for ₹33.90 crores, which includes interest and penalties. The tax period applicable to this demand is FY 2018-19.

The authority has identified that the transfer or assignment of leasehold rights in respect of a leasehold industrial plot is considered a taxable supply of services under GST laws. A specific penalty of ₹10.32 crores has been demanded as part of this order, though no other restrictions or sanctions have been imposed on the company.

Diligent Media Corporation Limited has previously made submissions to the authority, arguing that the assignment of leasehold rights is a "transfer of land" and therefore not a taxable "supply" under the GST regime. The company plans to take appropriate steps following discussions with its legal counsels.