The GST department has upheld a tax demand of ₹37.33 Cr against listed fintech major Pine Labs for a case dating back to FY20. The dues include non-payment of GST worth almost ₹14.9 Cr, on which accrued interest has climbed to almost ₹20.9 Cr. In addition, it is facing a penalty of ₹1.48 Cr. Pine Labs said that the order won’t have any “immediate material impact on the financial, operation and other activities of the company”. It is in the process of filing an appeal against the order before the Customs, Excise And Service Tax Appellate Tribunal (CESTAT). According to Pine Labs, the unpaid GST originated from its acquisition of digital gift card company Qwikcilver Solutions Private Limited in 2019, which it merged with in 2022 to create a consolidated legal entity. Pine Labs had filed an appeal against the GST demand order, however, the joint commissioner of commercial taxes – Bengaluru upheld the tax demand. Pine Labs has been grappling with similar legal and tax issues for a few years. In August 2024, GST authorities alleged that it wrongly availed GST credits between July 2017 and March 2024, tied to co-branding activities, product listing fees on online platforms, and… Read MoreInc42 Media
