Yatra Online and its Subsidiary Get Big Relief of Over Rs 150 Crore by CESTAT:

The order removes a huge financial burden of around Rs 154 crore in total tax and penalties.

CESTAT Cancels Demand and Penalty Against Yatra Online

Nidhi

Apr 2, 2026

Last update on Apr 2, 2026

Yatra Online and its Subsidiary Get Big Relief of Over Rs 150 Crore by CESTAT

Yatra Online Limited has received major relief as the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh, has ruled in the company and its subsidiary TSI Yatra's favour. In its regulatory disclosure dated April 1, 2026, the company stated that the tribunal deleted large tax demands and penalties imposed earlier by tax authorities.

Background of the Case

The issue relates to tax demands raised against Yatra and its subsidiary, TSI Yatra Pvt. Ltd. Here were the key issues ruled in favour of the company:

CRS/GDS Incentives: It was held by the tribunal that incentives received from the Computer Reservation System cannot be taxed under 'Business Auxiliary Service' or 'Intermediary Service'.
Fuel Surcharge: The tribunal said that a fuel surcharge cannot be added to "basic fare" for calculating service tax under the Service Tax Rules, 1994.
Abatement Claims: The tribunal deleted the denial of abatement benefits.
Other Issues: The tribunal also set aside other issues like demand towards the short payment of service tax, the reverse charge mechanism (RCM) on foreign expenditure, and CENVAT credit on gateway charges.

The company Yatra got relief of Rs 150.72 crore in total tax and penalties. Its subsidiary TSI Yatra got relief of Rs 3.98 crore in tax demands and penalties.

Key Detail of Order

Particulars	Yatra Online Limited	TSI Yatra Pvt. Ltd.
Duty Demand Dropped	Rs 111.25 crore plus interest	Rs 1.99 crore plus interest
Penalty Dropped	Rs 39.47 crore	Rs 1.99 crore
Order Date	March 30, 2026	March 30, 2026

Financial Impact

The order removes a huge financial burden of around Rs 154 crore in total tax and penalties. According to Yatra Online Limited, the order gives relief to the company in long-standing tax litigations.

Company's Disclosure Compliance

The above disclosure was given by Yatra Online Limited under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to both the stock exchanges.

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Nidhi

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Nidhi is a skilled content writer specializing in personal finance. She creates clear, engaging articles on mutual funds, investments, insurance, and wealth-building strategies. With a passion for simplifying complex financial topics, Nidhi helps readers make informed money decisions with confidence. She can be reached at [email protected]