Zomato Faces New GST Demand of Rs 9.45 Crore

According to the filing made by Zomato with the BSE, it was for FY 2019-20 and includes a GST of Rs 5,01,95,462, along with an interest component of Rs 3,93,58,743 and a penalty of Rs 50,19,546. The company said it would challenge the order by citing confidence in its case as it plans to file an appeal with the concerned authorities.

Another demand notice of about Rs 9.45 crore, including interest and penalty has been issued to Zomato, the online delivery platform of food items, according to a regulatory filing. The Assistant Commissioner of Commercial Taxes (Audit) issued the notice in Karnataka.

According to the filing made by Zomato with the BSE, it was for FY 2019-20 and includes a GST of Rs 5,01,95,462, along with an interest component of Rs 3,93,58,743 and a penalty of Rs 50,19,546. The company said it would challenge the order by citing confidence in its case as it plans to file an appeal with the concerned authorities.

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The development comes just after Zomato has been under the scanner for tax-related matters once again. Recently, a sales tax officer in Delhi issued an order for GST demand and penalty amounting to over Rs 2 crore to the company. In the order, it was said that the GST demand with respect to also another incident was Rs 2,22,91,376, interest Rs 2,08,98,164, and penalty Rs 22,29,136 for the period from April 2018 to March 2019. In another such incident in April, Zomato faced another GST demand and penalty of Rs 11.81 crore.

The online food delivery platform has been in the news this month for notices from Delhi and Karnataka tax authorities, which said that Zomato had alleged discrepancies to the tune of Rs 4.2 crore paid as GST in 2018.

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