Food delivery giant Zomato has announced it will appeal a Rs 5.6 crore Goods and Services Tax (GST) demand from the West Bengal government for the period April 2020 to March 2021. This follows a previous Rs 3.69 crore GST notice from the state, which Zomato is also challenging. Despite facing multiple GST demands from various Indian states, Zomato has reported significant financial growth, with profits soaring in Q1 FY25 and its stock price performing exceptionally well.
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
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FAQ :
Zomato is challenging a total GST demand of Rs 5.6 crore from the West Bengal government, which includes GST, interest, and penalties for the period April 2020 to March 2021.
Yes, this is the second GST demand Zomato has received from West Bengal. The first was a notice of Rs 3.69 crore for GST on delivery charges from April 2019 to March 2020.
Zomato believes it has a strong case on merits and plans to file an appeal against the order before the appropriate authority.
Yes, Zomato has faced multiple GST demands from other states, including Rs 3.5 lakh from Delhi and Rs 4.59 crore from Tamil Nadu, as well as tax notices from Karnataka, Haryana, and Gujarat.
Despite the tax challenges, Zomato has shown strong financial growth. In Q1 FY25, its profit increased to Rs 253 crore, and revenue from operations grew by 74 percent to Rs 4,206 crore.