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Current Affairs

Cloudtail service tax case

Date: 17 June 2021 Tags: Miscellaneous


Cloudtail India has been served a notice by DGGI for Rs 54.5 crores regarding a tax related dispute in the pre-GST era.



Cloudtail is a joint venture company between Catamaran Ventures, owned by Narayana Murthy (76 percent) and Amazon (24 percent).



  • The details of the issue are not known but the DGGI had sent notice to Cloudtail demanding service taxes, including penalties and interest.

  • The company has approached the adjudicating tribunal for resolving the issue. The company claims that it has completely complied with the law of the land.


Pre-GST service tax

  • The GST was introduced in 2017. Before its rollout, service tax was in existence. Since then, several cases have been filed regarding pre-GST service taxes.

  • The indirect tax authorities have sent notices to several entities to pay their dues concerning service tax charges.



  • Cloudtail is the largest seller on Amazon platform. It has captured more than 50 percent of all business that is generated on the e-commerce site.

  • Prione Business is the holding company of Cloudtail. Prione is majority owned by Catamaran ventures and minority by Amazon.