BlackBuck Receives Tax Demands Totalling INR 14.2 Cr

Nitin Konde, Varun Bhardwaj

26 Feb 2025 — 3 min read

BlackBuck Faces INR 14.2 Crore Tax Demand Notice

Zinka Logistics Solutions, the parent company of logistics giant BlackBuck, has received two tax notifications amounting to INR 14.2 crore. This encompasses a demand of INR 10.02 crore from the Assistant Commissioner of Commercial Taxes (Audit), Bengaluru, for the period from April 2020 to March 2021, and a demand of INR 4.18 crore from the Office of the Deputy Commissioner of Income Tax (TDS). The initial order, given on February 24, 2025, concerns the company purportedly misappropriating input tax credit (ITC) under GST amounting to INR 10.02 crore, as stated by BlackBuck in an exchange filing.

The notice states that the total tax liability is INR 2.88 crore under IGST, INR 3.56 crore under CGST, and INR 3.56 crore under KGST. Furthermore, the corporation has been mandated to remit an interest of INR 7.67 crore and a penalty of INR 1.02 crore.

Company’s Response

The logistics company stated in a separate exchange filing that the Income Tax agency had issued a tax demand for default for short-deduction/non-remittance of TDS totalling INR 4.18 Cr (with interest). According to BlackBuck, the firm feels it has a good argument on the grounds of both rulings. An appeal against the order will be submitted by the corporation to the relevant body. BlackBuck is a B2B marketplace for intercity full truckload (FTL) transportation that was founded in 2015 by Rama Subramaniam, Chanakya Hridaya, and Rajesh Yabaji, both of whom were graduates of IIT Kharagpur. Through its tech-enabled platform, it instantly links truck drivers with companies that need to ship.

BlackBuck’s Financial Outlook

After going public in November of last year, the company's consolidated net loss increased 145% from INR 19.57 Cr in the previous quarter to INR 48.03 Cr in Q3 FY25. In Q3, however, it incurred INR 69.44 Cr in share-based payment expenses and INR 8.45 Cr in IPO expenses. The business would have reported a profit of INR 29.86 Cr from ongoing operations if not for these extraordinary factors. Meanwhile, its operating revenue increased 41% from INR 80.86 Cr in Q3 of FY25 to INR 113.98 Cr.

How BlackBuck Operates?

More than 93% of BlackBuck's income comes from contract trucking. Additionally, it offers clients telemetry services that allow them to follow all trucks in real time, keeping an eye on their shipment during the entire process. Additionally, BlackBuck has a partnership with banks and marketers of petroleum goods for which it serves as an agent. It collects a commission for handling the management and distribution of radio frequency identification (RFID) tags.

The remaining amount of operating revenue is generated by these supplementary services. In exchange for business from the trucks it rents, the corporation receives a commission of roughly 15–25%. Its platform features truck services that are appropriately described, and its job is to match clients with trucks in an intelligent manner based on the needs of each individual. The heart of every invention is logistics.