Fintech agency Pine Labs Restricted has obtained a GST demand order of Rs 37.33 crore for the monetary 12 months 2019-20, linked to tax liabilities of Qwikcilver Options Personal Restricted, the digital present card firm it acquired in 2019 and later amalgamated with in 2022.

In a regulatory disclosure on February 5, 2026, Pine Labs stated the order was issued by the Workplace of the Joint Commissioner of Industrial Taxes (Appeals)-4, Bengaluru, underneath Part 107(11) of the Karnataka Items and Companies Tax Act, 2017 and the Central Items and Companies Tax Act, 2017. The matter had already been disclosed within the firm’s IPO supply paperwork.

The demand includes GST of Rs 14.89 crore, curiosity of Rs 20.95 crore, and a penalty of Rs 1.48 crore, taking the overall to Rs 37.33 crore. Pine Labs stated the order “has no quick materials influence on the monetary, operation and different actions of the Firm” and that it’s within the technique of submitting an attraction earlier than the Customs, Excise and Service Tax Appellate Tribunal.

In line with the corporate, the disputed GST pertains to Qwikcilver, which was merged into Pine Labs following an order of the Nationwide Firm Regulation Tribunal, New Delhi Bench, dated September 14, 2022. Pine Labs had earlier challenged the GST demand, however the Joint Commissioner upheld the order.

The fintech agency has confronted different tax-related scrutiny in recent times. In its draft pink herring prospectus, Pine Labs disclosed GST-related claims exceeding Rs 300 crore, together with allegations in August 2024 that it had wrongly availed enter tax credit linked to co-branding actions, product itemizing charges, and promoting bills.

On the monetary entrance, Pine Labs lately reported its second consecutive worthwhile quarter, posting a consolidated net profit of Rs 42.4 crore in Q3 FY26.