Matrimony.com received GST penalty orders from Tamil Nadu, Karnataka, Kerala, and Maharashtra for alleged ineligible ITC claims and excess distribution; it filed appeals and initiated legal action to contest them.
Kashish Bhardwaj | Apr 3, 2026 |
Matrimony.com Faces GST Penalty Orders Across Four States; Files Legal Appeal
Matrimony.com Limited has informed the National Stock Exchange of India Ltd under Regulations 30 (3) & (4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that it has received an order from the GST departments of Tamil Nadu, Kerala, Maharashtra, and Karnataka dated April 2, 2026.
Background of the Case
The company has received payment orders of tax and penalty from the GST departments of Tamil Nadu, Karnataka, Kerala and Maharashtra on charges of illegal distribution and utilisation of Input Tax Credit (ITC).
Details of Demand raised by the GST Department
1. Tamil Nadu GST Department
In Tamil Nadu, this demand has been raised by the Commercial Tax Officer, GST Department, Chennai. A penalty order of approximately Rs 8.52 crore under Section 74 of the CGST Act, 2017, was received on March 30, 2026. The main reasons for this demand are blocked ITC (Section 17(5)), excess distribution of common input services under ISD, and claiming ineligible ITC.
The company believes that this demand is not legally correct. On the basis of expert opinion, the company believes that it has a strong case, and the demand can be removed by the appellate authority. The company is taking legal action in this matter. Therefore, there will be no significant impact on the financial position or operations of the company.
2. Karnataka GST Department
In Karnataka, this demand has been raised by the Assistant Commissioner, GST Department, Bengaluru. Penalty order of Rs 55.62 lakh under Section 74 was issued on 18 February 2026.
The reason for this is excess distribution of input services and an ineligible ITC claim under ISD.
The company believes that its case is strong and the demand is not legally sustainable. The company is challenging this. Therefore, there will be no material impact on the financials or operations of the company.
3. Kerala GST Department
In Kerala, this demand has been raised by the State Tax Officer, Ernakulam. Penalty order of Rs 41.79 lakh under section 74 was received on 30 March 2026.
The main reason for this is the excessive distribution of common input services under ISD.
According to the company, this demand is not correct and is based on a wrong interpretation. The company is taking legal action and is confident that the case will go in its favour. Therefore, there will be no significant impact on the company.
4. Maharashtra GST Department
In Maharashtra, this demand has been raised by the Superintendent, GST Department, Mumbai. Penalty order of Rs 73.56 lakh under section 74 was received on 27 March 2026.
The reasons for this are excess distribution under ISD, ineligible ITC claims, and not maintaining proper books of accounts.
The company believes that this demand is wrong and it is challenging it legally. Based on expert opinion, the company is confident that this demand will be removed. Therefore, there will be no material impact on the financials and operations of the company.
Key details of Order
| State / Authority | Date of Order | Penalty/Tax Amount (Rs) | Issued By |
| Tamil Nadu – GST Department | March 30th, 2026 | Rs.8,52,92,825 | Commercial Tax Officer, GST Department, Chennai, Tamil Nadu |
| Karnataka – GST Department | February 18th, 2026 | Rs. 55,62,436 | Assistance Commissioner, GST Department, Bengaluru, Karnataka |
| Kerala – State Tax Officer | March 30th, 2026 | Rs. 41,79,583 | State Tax Officer, Ernakulam, Kerala |
| Maharashtra – GST Department | March 27th, 2026 | Rs. 73,56,871 | Superintendent, GST Department, Mumbai, Maharashtra |
The company has filed an appeal against these orders and is also adopting legal remedies. The Company is taking necessary action to resolve these disputes.
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