Brainbees Solutions Faces GST Scrutiny Over ITC Discrepancies

GlobalBees Brands Private Limited, a subsidiary of Brainbees Solutions, the parent company of FirstCry, has invested Rs 4.5 crore to acquire a 24% stake in Dynamic IT Solution Private Limited, which is a step-down subsidiary. Founded in 2002, Dynamic IT Solutions specializes in the design, development, trade, and supply of software, as well as sports and fitness accessories under the brand name “Strauss.”

Earlier this year, GlobalBees raised Rs 150 crore ($18 million) in a debt round led by Avendus. The company’s board approved a special resolution to issue 1,500 non-convertible debentures (NCDs) at an issue price of Rs 10,00,000 each to facilitate this fundraising, as stated in a regulatory filing.

In a separate development, Brainbees Solutions has received a notice from the Karnataka GST authorities regarding discrepancies in Input Tax Credit (ITC) claimed for FY 2020-21, specifically between the ITC reported in GSTR-3B and that reflected in GSTR-2A.

Additionally, in September, the SoftBank-backed e-commerce rollup startup increased its stakes in two of Brainbees Solutions’ step-down subsidiaries—Frootle India Private Limited and Wellspire India Private Limited—by investing Rs 105.15 crore and Rs 1.05 crore, respectively.