Zomato Receives ₹9.45 Cr GST Notice; Intends to Appeal Against Tax Order

Zomato Ltd., the online food delivery platform, has been served with a Goods and Service Tax (GST) demand amounting to ₹9.45 crore by the Karnataka Assistant Commissioner of Commercial Taxes (Audit) in a recent filing.

The state's tax authority has imposed a GST of ₹5,01,95,462 on Zomato, to which an additional interest amount of ₹3.93 crore has been applied, and a fine of ₹50.19 lakh has been levied, resulting in a final tax amount of ₹9.45 crore. This demand comes following an audit of Zomato's GST returns and accounts for the financial year 2019-20.

Zomato shares rose by 0.10 per cent to close at ₹200.35 on 28 June,  a slight increase from their previous high of ₹200.15 set earlier.

In response to the tax notice, Zomato expressed confidence in its case and intends to appeal the decision to the relevant authority. 

This isn't the first time Zomato has faced GST-related scrutiny. In 2021, the company also encountered a significant GST tax demand of ₹11.82 crore from the Centre's Additional Commissioner, Central Goods and Services Tax, Gurugram, which it also contested, citing a strong case.