Delhivery gets Rs.5.35 Crore GST Demand Notice for disallowance of ITC

The West Bengal Goods and Services Tax (GST) department has issued a notice to logistics major Delhivery to pay INR 5.35 crore in taxes.

In an exchange filing, the company stated that the order for FY21 was issued under subsection 73 of the West Bengal GST Act, 2017, in conjunction with section 20 of the IGST Act, 2017. In addition to the tax, Delhivery has been required to pay INR 53.57 lakh in interest and penalties.

The order noted disallowance of input tax credit (ITC) for a variety of reasons, including a brief ITC reversal under Rule 42/43, ITC disallowed from suppliers whose GST registration was terminated retrospectively, and suppliers who failed to file their GSTR-3B forms.

The company stated that the tax demand would have no meaningful impact on its finances or operations. “The company plans to file an appeal against the order with the appellate authorities. There is no material impact on the company’s finances, operations, or other activities,” it stated.

Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati founded Delhivery in 2011. The company specialises in transportation, supply chain, and logistics. It competes with Xpressbees, Blue Dart, Flipkart’s Ekart Logistics, and Amazon Shipping.

Its net profit increased 114% year on year (YoY) to INR 25 crore in the December quarter of the financial year ending March 2025 (Q3 FY25), making it its third consecutive successful quarter. The company’s total revenue, including other income, was INR 2,476.96 crore.

Delhivery recently announced some important leadership changes. It appointed Vani Venkatesh, a former Airtel executive, as chief business officer. It also appointed boAt cofounder Sameer Mehta as a non-executive, independent director, as well as Namita Thapar of Emcure Pharmaceuticals as an independent director.