StockWatch
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Tour, Travel Related Services
Tax & Penalty30 Sept 2026, 05:01 pm

Le Travenues Technology Receives ₹23.79 Cr Tax Show Cause Notice

AI Summary

Le Travenues Technology Ltd has received a Show Cause Notice dated September 29, 2026, from the Office of the Assistant Commissioner of Commercial Taxes, Bangalore, Government of Karnataka. The notice alleges contravention of KGST/CGST Act, 2017 and IGST Act, 2017, pertaining to the financial year 2022-23. The authorities contend that the company should pay GST at 18% on its IT and online advertisement services, rather than the 5% applicable to passenger transportation services, which the company classifies its core business as. The proposed demand amounts to ₹237,950,666/- (₹23.79 Crore), including tax, interest, and penalty. The company believes it has a strong case, citing a similar notice for FY 2021-22 on the same issue, which was dropped after the company's submissions. Le Travenues Technology plans to submit a comprehensive response with its tax advisors within the prescribed timelines.

Key Highlights

  • Received Show Cause Notice for FY 2022-23 from Karnataka Tax Authorities.
  • Proposed tax demand of ₹23.79 Crore including tax, interest, and penalty.
  • Dispute centers on GST rate applicable to company's services.
  • Company confident in merits, citing favorable prior experience.
  • Will submit a comprehensive response with tax advisors.