Delhivery Hit with ₹49.19 Cr GST Demand Notice Amidst Strategic Ecom Express Acquisition

Logistics major Delhivery has received a goods and services tax (GST) demand notice from the Directorate General of GST Intelligence (DGGI), Mumbai Zonal Unit, adding to the company’s ongoing regulatory challenges.

In a stock exchange disclosure, Delhivery confirmed that it was issued a show cause notice on May 6 under the Central Goods and Services Tax (CGST) Act, 2017 and the Integrated Goods and Services Tax (IGST) Act, 2017. The notice involves a financial claim of ₹49.19 crore, including interest and penalties.

The dispute revolves around the applicable GST rate for certain services offered by the company — a matter currently under scrutiny by the tax authorities.

This isn’t Delhivery’s first encounter with tax authorities. In February this year, the West Bengal GST department issued a demand order for ₹5.35 crore. Prior to that, the company had received a separate notice from the Karnataka GST authorities, highlighting a pattern of ongoing tax-related concerns.

The latest notice comes shortly after Delhivery’s announcement of acquiring a 99.4% stake in rival logistics firm Ecom Express for ₹1,407 crore. The deal, finalized through a distressed sale, reflects a nearly 80% plunge from Ecom Express’s earlier valuation of ₹7,300 crore. Delhivery has stated that the acquisition will enable it to boost profitability, expand operational scale, and cut costs.

Despite Ecom Express posting a net loss of ₹398 crore in the first nine months of FY25, Delhivery has downplayed any financial risks, asserting that no significant technology integrations will be required post-acquisition.

Founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati, Delhivery has grown into a leading name in the logistics and supply chain sector. Backed by global investors including SoftBank, Nexus Venture Partners, and Fidelity Investments, the company competes with players such as Xpressbees, Blue Dart, Ekart Logistics, and Amazon Shipping.

After achieving profitability in Q3 of FY24, Delhivery has continued to post strong financials, recording a 114% year-on-year increase in net profit to ₹24.98 crore in Q3 FY25. The company’s revenue for the same period stood at ₹2,476.96 crore.

In addition to its strategic expansion moves, Delhivery has recently seen a reshuffle in its leadership team. It appointed former Bharti Airtel executive Vani Venkatesh as Chief Business Officer, boAt co-founder Sameer Mehta as a non-executive independent director, and Emcure Pharmaceuticals’ Namita Thapar as an independent director.

The GST notice issued to Delhivery is part of a broader regulatory trend, with companies such as Swiggy, Urban Company, and Nazara Technologies also coming under the scanner of tax authorities in recent months.

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