MphasiS Limited has received an order from the Office of the Deputy Commissioner of Commercial Taxes - Large Taxpayer Unit- 1, Bangalore, imposing a penalty under Section 73 (9) of the Karnataka Goods and Services Tax Act, 2017. The order, received on December 23, 2025, pertains to the non-remittance of GST on Sales Marketing & support services, non-realization of foreign remittance against exports, incorrect availment of ineligible ITC, and interest on ITC reversal. The penalty imposed amounts to ₹3,290,801 (approximately ₹32.9 lakhs). The company stated that it does not accept the order and intends to contest it legally, believing it has reasonable grounds to succeed in higher appellate forums. MphasiS does not expect any adverse financial or operational impact from this demand, including interest and penalties. The delay in informing the exchange was due to the time required to verify the facts for accurate disclosure. The company will also make this information available on its website.