Zomato has received a tax demand of Rs.803.4 crore from authorities over alleged non-payment of GST on delivery charges, including interest and penalties, according to a regulatory filing. The company plans to challenge the demand and file an appeal. This development highlights ongoing scrutiny of compliance within the food delivery sector. Zomato stated it will address the issue through appropriate legal channels.
Mumbai: Zomato announced that the GST department in Thane has issued a tax demand of Rs. 803.4 crore, which includes interest and penalties. According to financial data on @twstofler, this amount represents 60% of the company’s net profit for FY24.
The demand pertains to the non-payment of GST on delivery charges for the period from October 29, 2019, to March 31, 2022.
In a regulatory filing, Zomato stated,
“The company has received an order on December 12, 2024, from the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra, confirming a demand of GST amounting to Rs.401,70,14,706, along with applicable interest and a penalty of Rs.401,70,14,706.”
Zomato expressed confidence in its position, stating,
“We believe that we have a strong case on merits, which is backed by opinions from our external legal and tax advisors. The company will be filing an appeal against the order before the appropriate authority.”
In the latest trading session on December 12, Zomato’s shares closed at Rs.285.60 on the BSE, reflecting a decline of 2.12 percent, or Rs. 6.20, from the previous day.
Zomato is a leading online platform that connects customers with restaurants for food delivery, dine-in reservations, and reviews. Founded in 2008, the company revolutionized the dining experience by providing a seamless way to explore cuisines and order food. With operations in multiple countries, Zomato offers users a rich database of restaurants, complete with menus, ratings, and user reviews.
The platform also empowers restaurant owners with tools to enhance their online presence and manage delivery logistics. By leveraging technology and data, Zomato has become a key player in the global food-tech industry. Its innovative services continue to shape how people discover and enjoy food.
The prominent food delivery service, has been issued a tax demand of Rs.803.4 crore by authorities, raising concerns about its financial responsibilities. This demand relates to alleged errors in tax calculations, which include interest and penalties. The company has expressed its plan to contest the notice and file an appeal, emphasizing its adherence to current tax regulations.
Zomato believes it has a solid case and is dedicated to addressing the matter through legal means. This situation arises amid heightened scrutiny of major players in the food-tech industry. The outcome of the appeal may significantly impact the company’s operations and financial stability.
Read Attachment
