Yatra Online and its Subsidiary Get Big Relief of Over Rs 150 Crore by CESTAT
Yatra Online Limited has received major relief as the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh, has ruled in the company and its subsidiary TSI Yatra’s favour. In its regulatory disclosure dated April 1, 2026, the company stated that the tribunal deleted large tax demands and penalties imposed earlier by tax authorities.
Background of the Case
The issue relates to tax demands raised against Yatra and its subsidiary, TSI Yatra Pvt. Ltd. Here were the key issues ruled in favour of the company:
- CRS/GDS Incentives: It was held by the tribunal that incentives received from the Computer Reservation System cannot be taxed under ‘Business Auxiliary Service’ or ‘Intermediary Service’.
- Fuel Surcharge: The tribunal said that a fuel surcharge cannot be added to “basic fare” for calculating service tax under the Service Tax Rules, 1994.
- Abatement Claims: The tribunal deleted the denial of abatement benefits.
- Other Issues: The tribunal also set aside other issues like demand towards the short payment of service tax, the reverse charge mechanism (RCM) on foreign expenditure, and CENVAT credit on gateway charges.
The company Yatra got relief of Rs 150.72 crore in total tax and penalties. Its subsidiary TSI Yatra got relief of Rs 3.98 crore in tax demands and penalties.
Key Detail of Order
| Particulars | Yatra Online Limited | TSI Yatra Pvt. Ltd. |
| Duty Demand Dropped | Rs 111.25 crore plus interest | Rs 1.99 crore plus interest |
| Penalty Dropped | Rs 39.47 crore | Rs 1.99 crore |
| Order Date | March 30, 2026 | March 30, 2026 |
Financial Impact
The order removes a huge financial burden of around Rs 154 crore in total tax and penalties. According to Yatra Online Limited, the order gives relief to the company in long-standing tax litigations.
Company’s Disclosure Compliance
The above disclosure was given by Yatra Online Limited under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to both the stock exchanges.
