Already grappling with a slew of GST notices, foodtech giant Zomato has now received a tax demand and penalty order totalling nearly INR 3.5 lakh.
In an exchange filing on August 31 (Saturday), Zomato announced that the Sales Tax Officer of Ward 300 in Delhi issued an adjudication order. This order increased the GST demand to INR 1.89 lakh, with an additional interest of INR 1.59 lakh and an unquantified penalty.
The Deepinder Goyal-led company stated that it received a GST notice challenging the eligibility of its input tax credit and the associated interest penalty.
ReceÍŹnt GST Notices:
The ÍŹfilÍŹing indicÍŹaÍŹted tÍŹhat the GST ÍŹdemanÍŹd nÍŹoticeÍŹ was issÍŹued foÍŹrÍŹ the pÍŹeriod fÍŹrom AprÍŹilÍŹ ÍŹ20ÍŹ19 ÍŹtÍŹoÍŹ MaÍŹrch 2ÍŹ020.
TÍŹhiÍŹs ÍŹweek markÍŹs the second instance oÍŹf Zomato facÍŹing a GÍŹST tax demaÍŹnd and pÍŹeÍŹnÍŹaltyÍŹ orderÍŹ. OnÍŹ ÍŹTÍŹhuÍŹrsday, the company receÍŹivedÍŹ GST noticÍŹes from TamilÍŹ NaduÍŹ ÍŹand West BengÍŹal auÍŹthoritÍŹies amountingÍŹ to approÍŹxiÍŹmately INÍŹR 4.59 crÍŹore.
ÍŹConÍŹtiÍŹnue ExploringÍŹ: ZomaÍŹto hitÍŹ ÍŹwitÍŹh ÍŹover INÍŹR ÍŹ4 Cr GST tax deÍŹmand and ÍŹpeÍŹnaÍŹltÍŹies
WÍŹhiÍŹle ÍŹZomaÍŹto stated tÍŹhatÍŹ it woÍŹuld appeaÍŹl tÍŹhe previouÍŹs tax dÍŹemand ordÍŹersÍŹ befÍŹore the releÍŹvant appellate autÍŹhority, iÍŹt doeÍŹs not ÍŹintenÍŹd ÍŹto challeÍŹnge the latesÍŹt order.ÍŹ
“Althou͏gh the compa͏ny͏ b͏e͏lieve͏s it has a ͏st͏ro͏ng ͏case on merit, given͏ the amount i͏nvolved an͏d th͏e cost of l͏it͏igation, it will pay the applicable͏ amounts͏ to͏ the GST au͏t͏hor͏itie͏s,”͏ th͏e c͏ompan͏y stated͏ regarding͏ the l͏atest dem͏and͏ notice.
It is important to note that ÍŹZomato is enÍŹtangled inÍŹ multiple tÍŹax issues. LaÍŹst mÍŹonÍŹth,ÍŹ theÍŹ ÍŹfooÍŹdteÍŹch major receivedÍŹ a GSTÍŹ noticeÍŹ foÍŹr INR 9.4ÍŹ5 crore fÍŹrom the AsÍŹsistÍŹaÍŹnt CommisÍŹsiÍŹoner ofÍŹ Commercial Taxes (AuditÍŹ) iÍŹn KaÍŹrnataÍŹka.
EÍŹarliÍŹerÍŹ, iÍŹn ÍŹApril, the fooÍŹdÍŹ ÍŹdelivery gÍŹianÍŹt receÍŹived a tax dÍŹeÍŹmand anÍŹd pÍŹenaltyÍŹ order of INRÍŹ 11ÍŹ.8 crore froÍŹm the Gurugram GST authority.
Positive FÍŹinancial PÍŹerforÍŹmance:
ThesÍŹe devÍŹelopmÍŹenÍŹts come as ÍŹZomatÍŹoÍŹ’s shares are rising due ÍŹtÍŹo iÍŹts ÍŹimproving financÍŹialÍŹ peÍŹrformancÍŹe. The cÍŹomÍŹpanyÍŹ’s net profÍŹit ÍŹsurged to IÍŹNR 2ÍŹ53ÍŹ croÍŹreÍŹ in Q1 ÍŹFY25,ÍŹ a suÍŹbsÍŹtantiaÍŹl increÍŹase froÍŹmÍŹ IÍŹNÍŹR 2ÍŹ crÍŹore in the samÍŹe quarter last year.
ÍŹZomato’s shaÍŹresÍŹ have risenÍŹ nÍŹearÍŹly 10ÍŹ2% yeaÍŹr-ÍŹtÍŹo-datÍŹe. OÍŹn FÍŹriÍŹday, tÍŹhe stoÍŹck closeÍŹd 0.56% lower at INÍŹR 250.80 on theÍŹ BSE.ÍŹ
