Maharashtra Sends Zomato a GST Demand Notice for INR 803.4 crore

Nitin Konde, Varun Bhardwaj

Dec 14, 2024 — 3 min read

Maharashtra Issues Zomato a GST Notice Worth INR 803.4 Crore

The food delivery aggregator Zomato announced on 12 December that a tax demand of INR 803.4 crore, including interest and penalties, had been made by the Thane GST department. In a regulatory filing, Zomato stated that the company had received a demand order over the nonpayment of GST on delivery charges, along with interest and penalties.

On December 12, Zomato Limited informed stock exchanges that it had received a GST order from the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra, confirming the demand for INR 401,70,14,706/- (Rupees 415 crores seventy lakhs fourteen thousand seven hundred and six) in GST, along with interest as applicable and a penalty of INR 401,70,14,706/- (Rupees 415 crores seventy lakhs fourteen thousand seven hundred and six) for the period September 29, 2019, through March 31, 2022.

Notice Due to Non-Payment of GST

In its stock exchange statement, Zomato Limited stated that it had received a demand order over the nonpayment of GST on delivery charges, together with interest and penalties.

The business stated that it feels it has a compelling case and will appeal to the relevant authority. "According to Zomato, the company has a compelling argument on its own merits, supported by the views of its outside legal and tax counsel. The business intends to appeal the order to the relevant authority," Zomato stated. The shares ended the latest trading session on December 12 at Rs 285.60 each, down 2.12% (or INR 6.20) from the closing of the day before.

Zomato on a Strict GST Scanner

It is important to note that earlier this year, authorities in Gujarat, Karnataka, and Haryana sent Zomato several GST demand notices. In September, the West Bengal GST authorities last sent it a GST demand and penalty order of more than INR 17.70 Cr. The same West Bengali body had earlier in the month sent it a GST notice for INR 9.85 Cr. The company was served with a demand notice by Pune tax authorities for allegedly failing to pay taxes on the delivery fees that were collected from clients between July 2020 and March 2022. The most recent step for Zomato follows its first qualified institutional placement (QIP) in late November, which garnered INR 8,500 Cr (about $1 billion).

In the meantime, Zomato CEO Deepinder Goyal, who frequently makes headlines for his odd tweets and comments, recently posted that the company was looking for a Chief of Staff and that the chosen candidate would need to pay the company INR 20 lakh in order to be hired.

He then stated that he never intended to charge individuals for the position, despite receiving over 18,000 applications. "This was no ordinary job posting. Goyal added, "As some have pointed out, 'You have to pay us 20 lacs (sic) was just a filter to find people who had the power to appreciate the opportunity of a fast track career without getting bogged down by constraints in front of them."