SUMMARY
- Delhivery promptly paid a total GST penalty of INR 5.5 lakh on September 4, after receiving a demand notice on September 3.
- Despite a substantial penalty for GST infractions, it has rebounded from a Q1 FY24 loss of INR 89.4 Cr to a Q1 FY25 profit of INR 54.3 Cr.
- The firm’s financial turnaround is marked by a 13% rise in Q1 service income to INR 2,172 Cr, amid recent tax penalties and demand notices.
The Assistant Commissioner of Commercial Taxes, Kolar, Karnataka, has sent a Goods and Service Tax (GST) demand notice of about INR 5.5 Lakh to the listed logistics company Delhivery. The notice which was received on 3rd September asked for two penalties: INR 2,74,465 under the KGST Act of 2017 and another INR 2,74,465 under the CGST Act of 2017. Delhivery paid the penalty on September 4th.
The petition also stated that there is no meaningful impact on the company’s operations, finances, or other activities. Following the company’s 63,538 stock option distribution to qualified employees, it increased the size of its employee stock option plan (ESOP) pool and imposed a tax penalty on Delhivery.
On August 31, the firm was served with a tax demand and penalty order totaling almost INR 3.5 lakh. Before then, the major in food technology faced tax demands and penalty orders totaling more than INR 4.59 Cr on goods and services tax (GST).
Following a net loss of INR 89.4 Cr in Q1 FY24, the company reported a net profit of INR 54.3 Cr in the first quarter of FY25. This is a substantial turnaround. The company recorded a 13% increase in its Q1 service income to INR 2,172 Cr from INR 1,930 Cr in the previous year.
