BlackBuck Gets INR 14.2 Cr Tax Demands

SUMMARY

Zinka Logistics Solutions, the parent of logistics major BlackBuck, has received two tax notices totalling INR 14.2 Cr

The first order, issued on February 24, 2025, pertains to the company allegedly wrongly availing input tax credit (ITC) under GST of INR 10.02 Cr

Meanwhile, in second order, the Income Tax department has raised a tax demand of INR 4.18 Cr (including interest) for default with respect to short-deduction/ non-remittance of TDS

Zinka Logistics Solutions, the parent of logistics major BlackBuck, has received two tax notices totalling INR 14.2 Cr.

This includes a demand of INR 10.02 Cr from the Assistant Commissioner of Commercial Taxes (Audit), Bengaluru for April 2020 to March 2021 period, and a demand of INR 4.18 Cr from the Office of the Deputy Commissioner of Income Tax (TDS).

The first order, issued on February 24, 2025, pertains to the company allegedly wrongly availing input tax credit (ITC) under GST of INR 10.02 Cr, BlackBuck said in an exchange filing.

According to the notice, the total tax liability amounts to INR 2.88 Cr under IGST, INR 3.56 Cr under CGST, and INR 3.56 Cr under KGST. Besides, the company has been asked to pay an interest of INR 7.67 Cr and a penalty of INR 1.02 Cr.

In a separate exchange filing, the logistics company said that the Income Tax department has raised a tax demand of INR 4.18 Cr (including interest) for default with respect to short-deduction/ non-remittance of TDS.

“We believe that we have a strong case on merits. The company will be filing an appeal against the order before the appropriate authority,” BlackBuck said for both the orders.

Founded in 2015 by IIT Kharagpur alumni Rajesh Yabaji and Chanakya Hridaya, and Rama Subramaniam, BlackBuck is a B2B marketplace for inter-city full truckload (FTL) transportation. It connects truck operators with businesses with shipping requirements in real time through its tech-enabled platform.

The company, which went public in November last year, saw its consolidated net loss jump 145% to INR 48.03 Cr in Q3 FY25 from INR 19.57 Cr in the year-ago quarter.

However, it incurred an IPO expense of INR 8.45 Cr and a share-based payment expense of INR 69.44 Cr in Q3. If not for these exceptional items, the company would have posted a profit of INR 29.86 Cr from its continuing operations. Meanwhile, its revenue from operations surged 41% to INR 113.98 Cr in Q3 FY25 from INR 80.86 Cr in previous year.

Shares of BlackBuck ended Tuesday’s (February 25) trading session 0.45% lower at INR 421.8 on the BSE.