Pine Labs faces Rs 37 crore tax bill as authorities reject appeal
09 Feb 2026, 11:23 AMThe tax issue traces back to Pine Labs' 2019 purchase of Qwikcilver Solutions.
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Tax authorities have upheld a Rs 37.33 crore demand against fintech company Pine Labs.
The bill breaks down to roughly Rs 14.9 crore in unpaid goods and services tax (GST), around Rs 20.9 crore in accumulated interest charges, and an additional Rs 1.48 crore penalty.
The tax issue traces back to Pine Labs' 2019 purchase of Qwikcilver Solutions, a digital gift card business that was later merged into the parent company in 2022.
After Pine Labs challenged the initial demand, Bengaluru's joint commissioner of commercial taxes upheld the decision last week, prompting the company to prepare file an appeal against the Joint Commissioner’s order before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
Pine Labs has stated the ruling will not have an immediate impact on its financial position or daily operations.
However, this isn't an isolated incident. The company disclosed in its IPO filing documents last year that it's dealing with GST-related claims exceeding Rs 300 crore.
Tax authorities also alleged last August that Pine Labs improperly claimed GST credits worth substantial sums between 2017 and 2024 related to co-branding partnerships, online marketplace fees, and gift card advertising.
This pattern extends beyond Pine Labs, as food delivery giant Zomato's parent company recently received similar demand notices worth around Rs 27.6 crore from West Bengal authorities, adding to tax disputes across multiple states including Uttar Pradesh, Delhi, Tamil Nadu, Maharashtra and Karnataka.
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