Demand for INR 1.8 Cr from ixigo Under GST, Penalty Notice Issued

The Haryana GST authorities have issued a demand order for INR 89.8 lakh to online travel aggregator ixigo. ixigo stated in an exchange filing that it was sent a demand notice by the assistant commissioner of Gurugram, Haryana, requesting that it pay INR 89.9 lakh in GST. In addition, the business has been ordered to pay INR 89.9 lakh in penalties and the relevant interest on this sum.

The company's previous "export of services alleged as intermediary services" is the subject of the order. ixigo stated that it will appeal the order to the relevant authority. The exchange company said in a filing that it thinks it has a compelling case based on the facts. An appeal against the order will be submitted by the corporation to the relevant body.

GST Putting its Scanner on New Tech Firms

This occurs at a time when several cutting-edge tech firms have just received GST demand notices. One97 Communications, the parent company of Paytm, was hit with an INR 1.19 Cr fine on February 4. Vijay Shekhar Sharma, the founder and CEO of Paytm, was also fined INR 59.94 lakh. Paytm claimed to have received a GST demand notice for INR 3.73 Cr on the same day, coupled with an equal penalty and interest. 

The food delivery giant Zomato, founded by Deepinder Goyal, most recently reported that the GST authorities have withdrawn a demand for INR 5.91 crore. The Additional Commissioner of CGST, Gurugram, made the demand, which covered the July 2017–March 2021 period and contained a penalty of INR 5.91 crore with interest.

Due mostly to tax charges, ixigo earlier this month reported a 49% drop in its consolidated net profit from INR 30.65 Cr in the year-ago quarter to INR 15.54 Cr in the third quarter of FY25.

Financial Outlook ixigo

The operating revenue of the travel tech platform increased 42% from INR 170.55 Cr in Q3 FY24 to INR 241.76 Cr in the reviewed quarter.  Additionally, the business distributed 10.58 lakh equity shares to qualified workers last week through a number of employee stock option plan (ESOP) programs. On the BSE, ixigo's shares closed on February 5 trading session up 2.79% at INR 158.25.

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StartupTalkyNitin Konde