Zomato’s taste spoiled, got GST notice of ₹ 9.45 crore, know what the company will do now
Online food delivery company Zomato Limited has suffered a setback. In fact, the company has received a Goods and Services Tax (GST) demand notice of ₹9.45 crore from the Assistant Commissioner of Commercial Taxes (Audit), Karnataka. The company gave this information in the BSE exchange filing. Karnataka’s tax regulator has made a GST demand of ₹5,01,95,462 (₹5.01 crore). As per the filing, it will be marked with interest charges of ₹3.93 crore and penalty of ₹50.19 lakh, taking the total amount to ₹9.45 crore, Livemint reported.
Tax order has been received for the financial year 2019-20
According to the news, in the filing the company has said that the company has received the tax order for the financial year 2019-20 under the audit of GST returns and accounts. Let us tell you, shares of Zomato closed at ₹200.35 on Friday, June 28, up 0.10 percent from the previous close at ₹200.15. “We believe we have a strong case on the merits,” the company said in response to the tax notice. The company will file an appeal against the order before the appropriate authority.
Tax notice received earlier also
This is not the first time that a food delivery company has received a tax notice. Zomato had received a tax notice from the Additional Commissioner of Central Goods and Services Tax, Gurugram in 2021. According to media reports at the time, the notice demanded the company to pay ₹11.82 crore, including interest and penalty charges. The company also took the stance of appealing against the tax order.
