Yatra Online Limited and its wholly owned subsidiary, Globe All India Services Limited, have received Show Cause Notices (SCNs) from state tax authorities regarding Goods and Services Tax (GST) liabilities for the financial year 2022-23. The notices propose significant tax demands, interest, and penalties, raising potential financial exposure for the online travel agency.

Maharashtra Tax Authority Issues Demand

The Deputy Commissioner of State Tax in Mumbai issued an SCN to Yatra Online Limited on September 30, 2026. The notice proposes a tax demand of ₹21.36 crore, along with interest of ₹16.98 crore and a penalty of ₹1.52 crore.

The primary allegation concerns receipts reflected in the company's bank statements. The Department sought to treat these amounts as taxable turnover, despite Yatra’s position that the funds were received as a facilitator for onward payments to hotels. Additionally, the notice proposes GST on alleged commission income computed on a presumptive basis.

Other reconciliation-based allegations include issues with credit notes, input tax credit reconciliations, differences between GST returns, fixed asset disposals, and cancellation charges.

Subsidiary Faces Separate Notice in Karnataka

Globe All India Services Limited, a 100% subsidiary of Yatra, received a separate SCN from the Deputy Commissioner of Commercial Taxes in Bengaluru on September 23, 2026. This notice proposes a tax demand of ₹18.53 crore, interest of ₹11.42 crore, and a penalty of ₹1.85 crore.

The allegations against the subsidiary relate to the treatment of trade receivables as outward supplies, non-reversal of Input Tax Credit (ITC) under Section 16(2), and mismatches in turnover basis TDS records.

Combined Financial Exposure

The following table summarizes the proposed demands from both entities for FY23:

Company Response and Legal Stance

Yatra Online stated that both matters are currently at the SCN stage. The company firmly believes it has reasonable legal and factual grounds to defend its case. It is preparing detailed responses to submit within one month of the notice issuance, accompanied by supporting documents and reconciliations.

What the Numbers Show

The combined proposed liability across both entities exceeds ₹71 crore when including tax, interest, and penalties. A notable pattern is the high ratio of interest to principal tax demand. For Yatra Online, interest constitutes approximately 79% of the proposed tax amount, while for its subsidiary, interest represents about 62% of the tax demand. This suggests that the disputed transactions have been open for several years, accumulating significant statutory interest under the GST Act provisions cited.

Yatra Online shareholders approved the company’s audited financial statements for FY26 and reappointed director Murlidhara Kadaba at its 20th Annual General Meeting on September 15, 2026.

The meeting was conducted through Video Conferencing and Other Audio Visual Means. All resolutions were passed with the requisite majority, as confirmed by the scrutinizer’s report dated September 16, 2026.

Voting Results

Shareholders voted on two ordinary resolutions. The promoters cast all their votes in favor of both agenda items. Public institutional investors showed significant opposition to the adoption of financial statements but supported the director’s reappointment.

The total number of shares held by promoters stands at 9,83,16,858. These shares accounted for 100% of the promoter voting power for both resolutions.

Institutional Voting Split

Public institutional investors held 2,67,19,968 shares. For the financial statement resolution, they cast 1,14,47,136 votes in favor and 92,31,037 votes against. This resulted in a 55.36% approval rate from this category.

For the director reappointment, the same group cast 2,05,19,950 votes in favor and only 1,58,223 against, yielding a 99.23% approval rate.

Public non-institutional investors held 3,18,79,367 shares. They voted overwhelmingly in favor of both resolutions, with approval rates exceeding 99.9% in each case.

What the Numbers Show

The divergence in institutional voting behavior is notable. While public institutions supported the reappointment of Murlidhara Kadaba with near-unanimity (99.23%), they opposed the adoption of the FY26 financial statements by a margin of nearly 45% (44.64% against). This suggests specific concerns regarding the financial reporting or performance metrics disclosed in the FY26 audited statements, distinct from confidence in the board leadership.