Le Travenues Technology Limited received a show cause notice from the Karnataka GST authority on September 29, 2026, alleging contravention of the CGST and IGST Acts for FY23.

The notice, issued by the Assistant Commissioner of Commercial Taxes (Audit) in Bengaluru, proposes an aggregate demand of ₹23,79,50,666. This amount comprises a base tax of ₹13,75,43,738, interest of ₹86,65,2554, and a penalty of ₹13,75,4374. The company operates under the brand ixigo.

Nature of Alleged Contravention

The tax authorities contend that ixigo is liable to discharge GST at 18% on passenger transportation services through buses, rather than the 5% rate it currently applies. The company provides reservation and booking services via its online platform as an e-commerce operator.

Under Section 9(5) of the CGST Act, e-commerce operators collect taxes from customers. Passenger transport services are classified under HSN 996422, attracting a 5% GST rate. However, ixigo is also registered under HSN codes for IT-related services and online advertisements, which attract an 18% rate. The authority argues that this registration status mandates the higher tax rate for bus bookings as well.

Company Response and Precedent

The company stated it has a strong case on merits and plans to contest the notice after consulting tax advisors. It highlighted a precedent involving a similar show cause notice for FY22, which involved a demand of approximately ₹3.05 crore. That issue was dropped by the authority following submissions and a personal hearing.

What the Numbers Show

The proposed demand for FY23 is nearly eight times larger than the ₹3.05 crore demand raised for FY22. While the earlier notice was dropped, the significantly higher quantum for the subsequent year suggests intensified scrutiny or a broader interpretation of the taxable base by the authorities. The penalty component alone constitutes roughly 10% of the base tax demand.

Le Travenues Technology (ixigo) has scheduled a meeting with analysts and investors on September 21 at 10:00 am.

Meeting details

The following details summarise the scheduled interaction:

Such meetings provide analysts and investors with an opportunity to engage directly with the company's management and gain insight into its operations and performance.