Quess Corp Faces ₹111 Crore GST Demand Over ITC

Quess Corp has been issued a penalty order by the CGST Department, which alleges that it passed an input tax credit without providing the corresponding manpower services. Quess Corp is now preparing to contest this decision, asserting that the penalty does not impact its overall financial or operational activities.

GST Demand and Penalty Imposed on Quess Corp

Quess Corp has received a demand order from the Office of the Commissioner of CGST, Palghar, regarding alleged violations under the Central Goods and Services Tax (CGST) Act. The order claims that Quess Corp issued invoices without providing actual goods or services. As a result, the company has been penalised with a fine of ₹111.26 crore under various sections of the CGST Act for the financial years 2019-20 to 2022-23.  

Allegations of Wrongful Input Tax Credit (ITC) Transfer

The main accusation against Quess Corp is that it wrongfully passed input tax credit (ITC) to insurance companies without actually providing manpower services. This is said to break the rules under Section 16(2) of the CGST Act, 2017 and Rule 36 of the CGST Rules, 2017. The company had shared its side of the story and personally explained the matter. however, the CGST Department did not take these into account before passing the order.  

Company’s Response and Next Steps

Quess Corp has stated that this penalty does not impact its financial or operational activities. The company firmly believes that the imposed penalty is not justified and plans to challenge the order through the appropriate legal channels within the given timeframe. It is currently in the process of formulating a response and will keep the stock exchanges updated regarding any further developments.

About the Company 

Quess Corp is a leading business services provider in India, offering solutions in workforce management, technology and asset management. The company helps businesses by providing staffing, facility management and digital services across various industries. With a strong presence in multiple sectors, Quess Corp focuses on improving efficiency and productivity for its clients through innovative and technology-driven solutions.

Quess Corp Share Performance 

As of February 03, 2025, at 10:55 AM, Quess Corp’s shares are trading at ₹616.60 per share, up 0.27% from yesterday’s closing price. Over the last month, the stock has fallen by 10.55%. The stock has a 52-week high and 52-week low of ₹875 per share and ₹459.50 per share respectively.

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