Yatra Online and its subsidiary, Globe ALL India Services, have received GST Show Cause Notices totaling Rs 71.66 crore for the 2022-23 financial year. The company is disputing the claims, which relate to alleged discrepancies in turnover, input tax credits, and commission treatment. Management asserts they have strong legal grounds to contest the demand, but the outcome remains a key regulatory contingency for investors.
Yatra Online Receives Rs 71.66 Crore GST Demand
Total demand across Yatra Online and subsidiary stands at Rs 71.66 crore.
Company plans to challenge the notices, asserting strong legal grounds for its defense.
Reader Takeaway: Regulatory clarity is pending; company contests tax interpretation of receipts and input credits to protect cash flow.
What just happened
Yatra Online Limited and its subsidiary, Globe ALL India Services, have been issued show cause notices (SCNs) regarding GST liabilities for the 2022-23 financial year. The parent company faces a total demand of Rs 39.86 crore, while its subsidiary is facing a claim of Rs 31.80 crore. These notices are currently at the preliminary stage and are not final tax orders.
Why this matters
The combined demand of Rs 71.66 crore represents a significant financial contingency. Tax authorities have challenged the company's treatment of certain bank statement receipts, arguing they should be taxed as turnover, whereas Yatra Online contends these funds were collected merely as a payment facilitator for hotels. Additional issues include discrepancies in credit notes and input tax credit (ITC) reconciliations.
What changes now
The management has confirmed that these notices do not constitute admitted liabilities. Yatra Online is preparing detailed legal responses and factual reconciliations to be submitted to tax authorities within the one-month deadline. Shareholders should watch for subsequent communications regarding the resolution of these show cause proceedings.
Risks to watch
Regulatory risks remain as the case progresses. Any adverse final orders from these tax authorities could impact the company's working capital or balance sheet. The ability of the company to effectively reconcile these transactions to the satisfaction of the Deputy Commissioners of Tax is critical.
What to track next
Watch for future regulatory filings detailing the outcomes of the submitted responses and any potential hearings or formal adjudication orders issued by the tax departments in Mumbai and Bengaluru.