Sagility Limited has received an order in Form GST DRC-07 dated June 3, 2026, from the Department of Commercial Taxes, Karnataka. This order, issued under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017, and the Central Goods and Services Tax Act, 2017, pertains to the period of April 2022 to March 2023. The total demand raised amounts to ₹90,44,596, which includes tax, interest, and penalty. Specifically, the demand comprises ₹31,86,995 for tax, ₹55,21,302 for interest, and ₹3,36,299 for penalty. The GST authorities invoked GST on export of services and denied input tax credit on certain credit notes in relation to these exports. Sagility Limited believes the demand is not maintainable and, based on advice from its tax advisors, is in the process of filing an appeal before the Joint Commissioner of Commercial Taxes (Appeals), Bengaluru, within the prescribed timelines. The company stated that the order has no material impact on its financials, operations, or other activities.
