In a recent regulatory filing dated April 4, 2025, Thomas Cook (India) Limited has informed the BSE and NSE about receiving an official GST order from the Joint Commissioner of State Tax, Bahala, West Bengal. This action comes under the purview of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI Master Circular dated November 11, 2024. The development was disclosed after the company received the tax order on April 3, 2025, post business hours.

The GST order has been issued for non-payment of GST on inward supplies that were liable to reverse charge. The tax demand raised amounts to INR 1,99,322, and is accompanied by an interest levy of INR 1,35,660 and a penalty of INR 20,000. The penalty has been imposed under Section 73 and the interest under Section 50 of the CGST Act, 2017.

Thomas Cook India has stated in its disclosure that the order pertains to an alleged violation of reverse charge GST provisions, where inward supplies attracted GST liability directly on the recipient, i.e., the company. The reverse charge mechanism (RCM) is a widely known GST compliance requirement under which the liability to pay tax is shifted from the supplier to the recipient of goods or services.

As per the Annexure A submitted alongside the stock exchange intimation, the following key details were highlighted:

• Name of Authority: Joint Commissioner of State Tax, Bahala, West Bengal

• Nature of Order: Demand for unpaid GST under reverse charge, with interest and penalty

• Date of Order: April 3, 2025

• Penalty Details: INR 20,000 imposed under Section 73 of CGST Act

• Interest Details: INR 1,35,660 under Section 50 of CGST Act

• Tax Amount: INR 1,99,322

Despite this development, the company has clarified that there will be no material impact on its financial or operational activities. Thomas Cook India further noted that it is in the process of appealing against the order before the appropriate appellate authority, asserting that it has a good case on merits.

This update is of critical importance to investors, compliance analysts, and financial regulators as it showcases how listed entities handle taxation orders and maintain compliance with GST laws in India. It also highlights the importance of timely GST filings, particularly when it comes to reverse charge obligations, which can often be overlooked or misinterpreted in complex business transactions.

Reverse charge provisions are an integral part of the Indian GST framework, introduced to ensure tax collection where the supplier may not be registered or located in India. The recipient, in this case Thomas Cook, is expected to discharge the tax liability directly to the government. Non-compliance, even unintentional, can result in substantial interest and penalties, as demonstrated by this recent order.

Thomas Cook India, being a well-known player in the travel and tourism sector, has reiterated that it remains committed to full regulatory compliance and is proactively addressing the issue through the legal route. As per the company’s statement, it is confident that the tax demand may not sustain upon review, thus maintaining its stance that the impact remains immaterial from a financial reporting standpoint.

This intimation has also been made available on the company’s official website, fulfilling its disclosure obligations under SEBI guidelines. Investors and stakeholders can interpret this action as part of routine regulatory processes, and the company’s quick response in informing the stock exchanges reflects strong governance practices.

Given the nature and limited quantum of the tax amount and penalty, market analysts do not anticipate this order to have any significant influence on the company’s stock performance or operational forecasts. However, the situation brings attention to increased GST audits and scrutiny being conducted across various Indian states, especially on reverse charge mechanisms and tax reconciliation for listed entities.

It is noteworthy that the SEBI Listing Regulations, particularly Regulation 30, mandate timely and detailed disclosures of any orders, notices, or penalties imposed by statutory or regulatory authorities. Compliance with these regulations builds investor trust and ensures that market participants remain informed about any developments that could potentially affect the company's functioning.

In summary, while Thomas Cook India has received a GST tax order with associated interest and penalty, the company is actively managing the situation with a proposed legal appeal, and believes that the order will not materially impact its financial or operational health. The episode underscores the importance of accurate GST compliance, particularly under reverse charge provisions, and reaffirms the company’s adherence to SEBI’s disclosure mandates and overall corporate governance standards.

As regulatory scrutiny tightens across India in areas like indirect taxation and compliance filings, listed companies are expected to be even more vigilant, and this disclosure from Thomas Cook sets a good example of timely regulatory transparency.

The Upcoming IPOs in this week and coming weeks are Aten Papers & Foam.

The Closed IPOs are  Infonative Solutions Limited, Spinaroo Commercial Limited,Retaggio Industries Limited.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in .Choice Broking FinX