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Zomato to Challenge Rs 5.6 Crore GST Demand from West Bengal Government

Last updated: 16 September 2024


On September 14, Zomato announced its intention to appeal a recent GST order from the West Bengal government, which demands a total of Rs 5.6 crore for the period from April 2020 to March 2021. This amount includes GST, interest, and penalties.

Initially, Zomato disclosed on September 13 that it might pay the GST due to the high cost of litigation. However, the company has now clarified that it plans to contest the order. In the revised statement, Zomato said, "The Company believes that it has a strong case on merits and will be filing an appeal against the order before the appropriate authority."

Zomato to Challenge Rs 5.6 Crore GST Demand from West Bengal Government

This is the second GST demand Zomato has received from West Bengal. The company received a previous demand notice of Rs 3.69 crore on August 29, related to GST on delivery charges from April 2019 to March 2020. Zomato is also appealing this notice.

In addition to these notices, Zomato has faced multiple GST demands from other states, including Rs 3.5 lakh from Delhi and Rs 4.59 crore from Tamil Nadu, both issued in August. The company has also dealt with tax notices from Karnataka, Haryana, and Gujarat in recent months.

Despite these challenges, Zomato has demonstrated strong financial growth. In Q1 FY25, the company's profit soared to Rs 253 crore, a significant increase from Rs 2 crore in the same quarter last year. Revenue from operations also grew by 74 percent, reaching Rs 4,206 crore compared to Rs 2,416 crore in Q1 FY24.

Zomato's stock has seen a remarkable 150 percent increase this year, closing at Rs 273.50 on September 12, outperforming the Nifty 50, which gained nearly 17 percent during the same period.

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