Yatra Online Ltd. Secures Significant Tax Relief from CESTAT

Yatra Online Ltd. Secures Significant Tax Relief from CESTAT​

Yatra Online Ltd. announced that the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in Chandigarh has issued an order in favor of the company and its subsidiary, TSI Yatra Pvt. Ltd., setting aside previously raised tax demands. The orders, dated March 30, 2026, were received by the company on March 31, 2026.

The tribunal set aside total duty demands of Rs. 1,11,25,81,653 (approximately Rs. 111.25 Crore) and penalties of Rs. 39,47,89,549 (approximately Rs. 39.47 Crore) for Yatra Online Limited, along with duty demands of Rs. 1,99,42,636 (approximately Rs. 1.99 Crore) and penalties of Rs. 1,99,52,636 (approximately Rs. 1.99 Crore) for TSI Yatra Pvt. Ltd. Interest will be applied as applicable to these amounts.

The tribunal’s rulings resolved key issues related to service tax, including incentives received from Computer Reservation System (CRS) companies, the inclusion of fuel surcharge in the "basic fare" for service tax calculation, and the denial of abatement benefits. The tribunal accepted that the proportional reversal of CENVAT credit by the companies amounted to not availing the credit. Other demands related to short payment of service tax, reverse charge mechanism on foreign expenditure, and CENVAT credit on gateway charges were also set aside.

With these orders, all three appeals have been allowed, and the previously issued orders from lower authorities have been overturned entirely. The company anticipates no material adverse financial impact and notes that the outcome provides significant relief from long-standing tax litigations. The information will also be made available on the company's website at www.yatra.com.

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