Traveltech firm EaseMyTrip receives Rs 17 lakh GST penalty notice

Online travel platform EaseMyTrip has received a penalty notice of Rs 17.35 lakh from the Sales Tax Officer in Delhi for alleged violations under the Goods and Services Tax (GST) laws.

The company disclosed this development in a regulatory filing and said it plans to appeal the order.

Details of the penalty

According to the filing, the State and Central GST authorities claim EaseMyTrip availed an ineligible input tax credit during the 2020-21 financial year, creating a mismatch in the company’s GST liability when comparing its GSTR-3B and GSTR-9 returns.

The penalty has been imposed under the Delhi Goods and Services Act, the Central Goods and Service Tax Act, and the Integrated Goods and Services Tax Act.

EaseMyTrip’s response

EaseMyTrip stated that this penalty will not have a “material impact” on its operations or finances. The company plans to challenge the order before the appropriate appellate forum, arguing that it has complied with the relevant tax regulations.

Recent developments

The penalty notice comes shortly after EaseMyTrip won a bid, through its subsidiaries YoloBus and Easy Green Mobility, to operate inter-city electric buses in Madhya Pradesh.

The company aims to deploy 500 such buses in 2025 and expand to 1,000 by 2026. Earlier this month, EaseMyTrip also incorporated a wholly owned subsidiary in Brazil, called Easy Trip Planners Do Brasil Ltda.

Financial performance

EaseMyTrip saw its profit after tax fall by about 26% year-on-year to Rs 34.02 crore in the third quarter of FY25, down from Rs 45.68 crore a year ago. Its revenue also dropped 6% to Rs 150.56 crore in the same period compared to Rs 160.78 crore last year.

In January, then-chief executive officer Nishant Pitti resigned from his post after previously offloading some of his shares in the company.

Despite top-deck changes, EaseMyTrip recently secured board approval to raise Rs 234.03 crore through a preferential allotment of equity shares.