The company has been requested to pay INR 2,22,91,376 for GST, in addition to additional interest and penalty costs totaling INR 2,31,27,300, according to the petition. The demand order has been received in relation to the over availment of input tax credit for the year 2018-19, together with levying relevant interest and penalty. The new tax penalty for Zomato comes days after the company received a GST notification of INR 11.8 Cr from the Gurugram GST department.
Zomato, a leading foodtech company, has received a new goods and services tax (GST) penalty notice from Delhi’s sales tax commissioner for fiscal year 2018-19.
According to a regulatory filing with the stock exchanges, a demand order has been received for excess availment of input tax credit for the fiscal year 2018-19, along with appropriate interest and penalty.
According to the petition, the company has been ordered to pay INR 2,22,91,376 in GST, plus additional interest and penalty charges totaling INR 2,31,27,300.
The business responded to the show cause notice by offering explanations on every point, backed up by pertinent data and records. However, it appears that the authorities did not properly evaluate issues before issuing the order.
“The Company believes it has a strong case to defend the matter before the relevant appellate authority and does not anticipate any financial impact,” Zomato stated in an exchange filing on Thursday (May 1).
The new tax penalty for Zomato comes only days after the company received a GST notification of INR 11.8 Cr from the Gurugram GST office.
The Karnataka tax department sent it two consecutive tax notices earlier this month for INR 23 Cr and INR 92 Cr.
It is worth noting that Zomato is now facing many tax difficulties. Gujarat’s Deputy Commissioner of State Tax issued a GST penalty notice to the foodtech company in March for the fiscal year 2018-19. In addition, the Directorate General of GST Intelligence, Pune Zonal Unit, issued a show cause notice to Zomato in December of last year for INR 401.7 Cr.
Meanwhile, on April 20, Zomato gained approval from the Indonesian government to liquidate its company in the Southeast Asian country.
The foodtech company is still seeing strong revenue and profit growth on the financial front. Zomato’s net earnings more than doubled sequentially to INR 138 Cr in the quarter ending December 2023. Similarly, its operating revenue increased by more than 15% quarter on quarter (QoQ) to INR 3,288 Cr in the third quarter of FY24.
