Pine Labs faces Rs 37.33 crore GST demand in FY20 Qwikcilver-related case

Fintech firm Pine Labs Limited has received a GST demand order of Rs 37.33 crore for the financial year 2019-20, linked to tax liabilities of Qwikcilver Solutions Private Limited, the digital gift card company it acquired in 2019 and later amalgamated with in 2022.

In a regulatory disclosure on February 5, 2026, Pine Labs said the order was issued by the Office of the Joint Commissioner of Commercial Taxes (Appeals)-4, Bengaluru, under Section 107(11) of the Karnataka Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017. The matter had already been disclosed in the company’s IPO offer documents.

The demand comprises GST of Rs 14.89 crore, interest of Rs 20.95 crore, and a penalty of Rs 1.48 crore, taking the total to Rs 37.33 crore. Pine Labs said the order “has no immediate material impact on the financial, operation and other activities of the Company” and that it is in the process of filing an appeal before the Customs, Excise and Service Tax Appellate Tribunal.

According to the company, the disputed GST relates to Qwikcilver, which was merged into Pine Labs following an order of the National Company Law Tribunal, New Delhi Bench, dated September 14, 2022. Pine Labs had earlier challenged the GST demand, but the Joint Commissioner upheld the order.

The fintech firm has faced other tax-related scrutiny in recent years. In its draft red herring prospectus, Pine Labs disclosed GST-related claims exceeding Rs 300 crore, including allegations in August 2024 that it had wrongly availed input tax credits linked to co-branding activities, product listing fees, and advertising expenses.

On the financial front, Pine Labs recently reported its second consecutive profitable quarter, posting a consolidated net profit of Rs 42.4 crore in Q3 FY26.