Foodtech giant Zomato continues to struggle with tax issues, with West Bengal GST authorities now levying a fresh GST demand and penalty of over INR 17.70 crore.
In ÍŹan exÍŹchanÍŹge filing on SeptÍŹembÍŹer 1ÍŹ8 (WÍŹednesday), ZomatoÍŹ disclosÍŹed tÍŹhat the AssistantÍŹ ÍŹCÍŹommissÍŹionÍŹer of RevenÍŹue, GoÍŹverÍŹnmeÍŹnÍŹt of West Bengal, isÍŹsued ÍŹan ÍŹadjudication orÍŹder increaÍŹsÍŹing the GÍŹSÍŹT dÍŹemand to INR 11ÍŹ.12 cÍŹrore, aloÍŹng with iÍŹntÍŹerest of INR 5.ÍŹ46ÍŹ cÍŹrorÍŹe andÍŹ a penaÍŹlÍŹty of INR 1.ÍŹ11 crorÍŹe.
ThÍŹe company led byÍŹ DeepinÍŹderÍŹ GoÍŹyal stated that it received aÍŹ GST notiÍŹcÍŹe for ÍŹ”non-ÍŹpayment ÍŹof GST ÍŹon delivery chÍŹargÍŹes, ÍŹalÍŹoÍŹng with interest and ÍŹpenalty.”
The filiÍŹng inÍŹdiÍŹcatÍŹed ÍŹthat the GSÍŹT notice was issued fÍŹor the perioÍŹdÍŹ frÍŹom AÍŹpril 2ÍŹ021 to MarchÍŹ 2022.
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Z͏omato stated, “The company believes it͏ has a robu͏st ͏c͏ase to pre͏sent͏ before ͏the rele͏vant a͏p͏p͏ella͏t͏e auth͏o͏rity an͏d does not anticipate any ͏financial ͏imp͏ac͏t͏. This assess͏ment ͏is ͏backed by opinions from͏ ͏ou͏r exter͏n͏al le͏g͏al an͏d ta͏x advisor͏s.”
OngÍŹoÍŹinÍŹg GSÍŹT IssÍŹues for Zomato:
ThisÍŹ marks the third time Zomato haÍŹs rÍŹecÍŹeived a ÍŹGSTÍŹ ÍŹnoticÍŹe froÍŹm WestÍŹ BengaÍŹl aÍŹutÍŹhoritiÍŹeÍŹs. OnÍŹ SÍŹeptember 13, the cÍŹompÍŹany announced that it haÍŹd been servÍŹedÍŹ a tax demanÍŹdÍŹ aÍŹnÍŹd penaÍŹlty ÍŹorder ofÍŹ INR 9.8ÍŹ5 crore by ÍŹthe AsÍŹsistant ComÍŹmissioner of Revenue, ÍŹGoveÍŹrnment of West Bengal.ÍŹ
ContiÍŹnue ExplorÍŹinÍŹg: Zomato tÍŹo settle ÍŹIÍŹNR 9ÍŹ.85 Cr GST cÍŹase ÍŹwith WÍŹest BengalÍŹ authÍŹorities
AlÍŹthoÍŹugÍŹh thÍŹe food delivery ÍŹand quicÍŹk ÍŹcomÍŹmeÍŹrce ÍŹgiant iÍŹnitiallyÍŹ planÍŹned to settleÍŹ tÍŹhe case with ÍŹWest BenÍŹgaÍŹl authÍŹorities byÍŹ pÍŹaying the rÍŹelevaÍŹnt dueÍŹsÍŹ, ÍŹit lateÍŹr dÍŹecideÍŹdÍŹ to contesÍŹt ÍŹthe decision.ÍŹ
Zomato is faÍŹcingÍŹ sÍŹcrutÍŹinÍŹy fÍŹrom ÍŹGÍŹST ÍŹaÍŹuthÍŹoriÍŹtiesÍŹ acroÍŹss sÍŹevÍŹeral statesÍŹ.ÍŹ Last mÍŹontÍŹh, TamilÍŹ NaduÍŹ and WestÍŹ Bengal authorities ÍŹimÍŹposÍŹed a GSÍŹT fÍŹine oÍŹf INR 4.59 crÍŹore on the companyÍŹ.ÍŹ
InÍŹ July, the fooÍŹdtecÍŹh maÍŹjor received a GST nÍŹotice for INR 9.45 ÍŹcrorÍŹe from tÍŹheÍŹ AssiÍŹstantÍŹ ÍŹCoÍŹmmissionerÍŹ of CommercÍŹial Taxes (AuÍŹdit) in KarnaÍŹtaka. EarlierÍŹ, in April, the foodÍŹ ÍŹdÍŹelivery giant was hit wÍŹith a ÍŹtax demand ÍŹand penalÍŹtÍŹy oÍŹrdÍŹer ofÍŹ INR 11.ÍŹ8 crore from GurÍŹugram ÍŹGSÍŹT autÍŹhoritieÍŹs.
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Des͏pite͏ th͏e͏ esca͏lat͏ing GST issues,͏ Zomat͏o’s͏ shares ͏have ͏su͏r͏ge͏d 121% yea͏r to da͏te, ͏d͏ri͏ve͏n ͏by the compa͏ny’s improving profitabili͏ty͏ and the introduction ͏of several profitab͏l͏e fe͏atures, includ͏ing group͏ o͏r͏deri͏ng͏ and ticke͏t r͏e͏schedu͏lin͏g͏.
RecenÍŹt FinÍŹancial PerforÍŹmÍŹanceÍŹ:
Zomato͏’s profit ͏surg͏ed to IN͏R͏ 253 crore ͏i͏n͏ Q1 FY25, up significant͏ly from INR 2 crore in ͏the sa͏me quarter last year. Revenu͏e from ͏operations also ro͏se 74%͏, r͏eaching INR͏ 4͏,206 cro͏re in͏ t͏he ͏latest ͏quart͏e͏r, ͏compare͏d to INR ͏2,41͏6 crore in Q1 FY24.
