Online food delivery platform Zomato has received another Goods and Service Tax (GST) demand notice, this time for approximately Rs 9.45 crore, including interest and penalty. The company disclosed in a regulatory filing that the demand was issued by the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka. The notice pertains to the financial year 2019-20, stemming from an audit of Zomato’s GST returns and accounts. The company stated in its filing on the Bombay Stock Exchange (BSE) that the demand includes Rs 5,01,95,462 in GST, Rs 3,93,58,743 in interest, and a penalty of Rs 50,19,546.
Zomato has asserted that it believes it has a strong case and will be filing an appeal against the order with the appropriate authority. Despite this recent demand, Zomato shares closed 0.10 per cent higher at Rs 200.35 on Friday.
This isn’t the first time Zomato has faced GST-related demands. Last month, the company received a GST demand and penalty order exceeding Rs 2 crore from Delhi’s sales tax officer. This order covered the period from April 2018 to March 2019, encompassing a GST demand of Rs 2,22,91,376, interest of Rs 2,08,98,164, and a penalty of Rs 22,29,136. In April, Zomato also received another GST demand and penalty order for Rs 11.81 crore.
Earlier this month, Zomato announced that it had received notices from tax authorities in Delhi and Karnataka regarding alleged short payment of GST in 2018, amounting to Rs 4.2 crore. These repeated notices from tax authorities highlight the ongoing scrutiny of Zomato’s tax compliance and raise concerns about potential future legal battles for the company.
