Foodtech Giant Zomato Gets Yet Another Demand Notice

Zomato, a food-tech giant, has received a tax demand and penalty order totaling over INR 3.5 lakh, adding to the flood of goods and services tax (GST) warnings it has already been receiving.

On August 31st, Zomato announced in an exchange filing that the Sales Tax Officer of Delhi's Ward 300 had issued an adjudication order, increasing the GST demand to INR 1.89 Lakh plus interest of INR 1.59 Lakh and any applicable penalty, the amount of which was not specified. The company headed by Deepinder Goyal claimed that it received the GST notification "disputing the eligibility of the input tax credit and interest penalty thereon."

The filing indicated that the GST demand notice was issued for the period beginning in April 2019 and ending in March 2020.              

The Second Notice in a Week

Zomato has been hit with a demand and penalty order for the Goods and Services Tax (GST) for the second time this week. GST notices for around INR 4.59 crore were received by the company on 29 August 2024 from the authorities in Tamil Nadu and West Bengal. Zomato has stated that it intends to proceed with an appeal against the most recent tax demand order, even though it previously stated that it would file an appeal against the previous tax demand orders before the applicable judicial body.

The company stated in response to the most recent demand notice that "despite the fact that the company believes that it has a strong case on merits, the company shall pay the applicable amounts to the GST authorities." This was in reference to the amount involved and the cost of litigation.

Zomato is now dealing with several tax concerns, which is an important fact to keep in mind. An INR 9.45 crore GST notice was sent to the food-tech major by the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka. This notice was received by the company as of the previous month.

The Gurugram Goods and Services Tax (GST) authority issued a tax demand and penalty notice for INR 11.8 crore to the food delivery company in April, before that. These changes take place at a time when Zomato's stock is increasing as a result of the company's growing financial performance. The company's net profit went from INR 2 crore in the previous year's quarter to INR 253 crore in the first quarter of FY25. The value of Zomato's stock has increased by about 102% so far this year.

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StartupTalkyNitin Konde