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TeamLease Services Limited has received an Assessment Order under Section 73 of The Karnataka Goods and Services Tax Act, 2017, from the Office of the Deputy Commissioner of Commercial Taxes. The order confirms a demand against an exemption claimed for the financial year 2021-22, related to the supply of Farm Labour. The Karnataka Goods and Services Tax Department has contested that the supply falls under Apprenticeship Training and not directly as labour for agriculture operations, and that the seeds produced by the customer do not qualify as agriculture operations.

The company has been levied a penalty of ₹19,65,215/- under Section 73 of the CGST Act. TeamLease stated that there is no material impact on its financials, operations, or other activities due to this order, as it is considered a contingent liability. The company intends to pursue an appeal if the demand cannot be recovered from its customers through an indemnity clause in their declarations. TeamLease plans to file the necessary appeal with the appellate authority within the permissible timeline of three months from the receipt of the order, which was dated December 29, 2025.