Hubtown Limited Undergoes Comprehensive GST Inspection by Mumbai Tax Department

Hubtown Limited, a prominent real estate developer, has disclosed a Goods and Services Tax (GST) inspection operation conducted by the Mumbai tax authorities. The operation, which took place from February 09 to February 13, 2026, covered both Hubtown Limited and its subsidiary, Joynest Premises Private Limited. The company has assured full cooperation and stated that there is no material impact on its financial or operational activities.

The GST inspection was conducted under Section 67 of the Maharashtra Goods and Services Tax Act, 2017, by the Assistant Commissioner of State Tax (CST-INV-D-0302), Investigation-C, Mazgaon, Mumbai - 400010. The operation focused on several key areas of GST compliance, including the payment of tax obligations, claims for input tax credit, tax implications on the supply of corporate guarantee services, reversal of input tax credit, and payment of deemed tax under real estate activities.

Both Hubtown Limited and Joynest Premises Private Limited provided all necessary documents, clarifications, and details as requested by the GST officials during the inspection period. The company emphasized its commitment to full cooperation and transparency with the authorities. It has also assured that it will continue to extend full cooperation and furnish any additional information that may be required by the authorities in the future.

Despite the ongoing inspection, business operations of both Hubtown Limited and Joynest Premises Private Limited continued as usual. The company has stated that there is no material impact on the financial position, operations, or other activities of either entity due to the GST inspection. This disclosure was made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, to ensure transparency with investors and stakeholders regarding the regulatory inspection.

Hubtown Limited has a strong track record in the real estate sector, known for its quality developments and adherence to regulatory standards. The company's proactive approach in cooperating with the tax authorities and maintaining business continuity during the inspection demonstrates its commitment to compliance and stakeholder trust.

Additionally, Hubtown Limited recently submitted revised Q3FY26 financial results to stock exchanges, correcting typographical errors in consolidated financial statements nomenclature. The company reported strong financial performance for the quarter ended December 31, 2025, with a net profit increase of 70.75% to ₹2,300 lakhs, despite a decline in revenue. The company is also facing ongoing GST inspection operations and auditor qualifications regarding unprovided interest on inter-corporate deposits.

For the nine months ended December 31, 2025, Hubtown Limited showed significant improvement across all key metrics, with a 31.20% increase in revenue from operations and a 100.00% increase in net profit compared to the corresponding period. The company's strong financial performance and proactive approach to regulatory compliance position it well for future growth and stability in the real estate sector.