Delhivery Hit with INR 1.36 Crore Tax Penalty by Income Tax Department

The Delhi Income Tax Department has issued a penalty order of INR 1.32 crore to the logistics startup Delhivery. According to the company's exchange filing, the Assessing Officer of Central Circle 18, Delhi, issued the penalty notice to it on June 28.

The ruling relates to specific expenses of INR 3.95 crore incurred by the corporation during the 2015–16 fiscal year, according to the exchange filing. The expenses were not disclosed by the corporation.

Delhivery has stated that it will challenge the order before the proper authority and refuse to pay the fine. It further stated that the order has no significant effect on the company's financials or operations.

Delhivery Under a Strict Scanner of Tax Authorities

The Directorate General of GST Intelligence, Mumbai, sent Delhivery a show-cause notice earlier last month for INR 49.19 crore. The order dealt with a question of interpretation regarding tax rates.

Earlier in February 2025, the Directorate of Commercial Taxes of the Government of West Bengal ordered Delhivery to pay INR 5.35 crore in goods and services tax (GST).

A penalty of INR 53.57 lakh and interest on the overdue amount were also imposed by the order, which was issued on February 26 in accordance with Section 73 of the West Bengal Goods and Services Tax Act, 2017, and Section 20 of the Integrated Goods and Services Tax Act, 2017.

Delhivery's regulatory filing states that the tax demand is the result of the Input Tax Credit (ITC) being denied for the fiscal year 2020–21.

According to the corporation, the disallowance is predicated on claims from dealers whose GSTINs were cancelled retroactively, claims from dealers who failed to file their GSTR-3B forms, and alleged short ITC reversals under Rule 42/43.

As a result of these conclusions, the tax authorities confirmed the demand for INR 5.35 crore along with an additional INR 53.57 lakh penalty.

CCI Greenlights Delhivery’s Acquisition of Ecom Express

Delhivery Limited's purchase of a minimum of 99.44% equity and preference shares in Ecom Express Limited, on a fully diluted basis, was authorised by the CCI earlier this month.

In April, Delhivery announced that it had paid INR 1,407 crore to acquire the majority of Ecom Express.

The publicly traded logistics behemoth Delhivery has expanded into a full-stack business with supply chain management, warehousing, cross-border logistics, and express package and freight services.

Delhivery, which is well-known for its significant investments in automation and data-driven delivery intelligence, has integrated Ecom Express, a leader in logistics for e-commerce, in an effort to increase last-mile capabilities and consolidate market dominance.

Despite not being publicly listed, Ecom Express has established a strong foothold in India's rapidly expanding e-commerce industry thanks to a network that is designed for returns, reverse logistics, and warehousing. One of the biggest integrated logistics systems in the nation is anticipated to be created by the acquisition.