Zomato Ltd., the popular food delivery provider, has been issued a Goods and Services Tax (GST) demand notice amounting to ₹9.45 crore by the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka, the company disclosed in a BSE exchange filing.
The Karnataka tax regulator has demanded a GST of ₹5.01 crore, accompanied by an interest charge of ₹3.93 crore, and a penalty of ₹50.19 lakh. The total demand sums up to ₹9.45 crore, as stated in the filing.
This tax order pertains to the financial year 2019-20 and arises from the audit of Zomato's GST returns and accounts.
In response to the notice, Zomato stated, "We believe that we have a strong case on merits and the company will be filing an appeal against the order before the appropriate authority."
This isn't the first instance of Zomato facing tax-related challenges. In 2021, the company received a tax notice from the Additional Commissioner of Central Goods and Services Tax, Gurugram, which demanded ₹11.82 crore, inclusive of interest and penalty charges. Zomato responded similarly by appealing against the tax order.
Following the news, Zomato shares closed 0.10 percent higher at ₹200.35 on Friday, June 28th, compared to the previous close of ₹200.15.
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