In Response to Bengal’s INR 9.85 Crore GST Order, Zomato Will File an Appeal

Nitin Konde, Apoorva Bajj

Sep 17, 2024 — 2 min read

In Response to Bengal’s INR 9.85 Crore GST Order, Zomato Will File an Appeal

Zomato, a food technology firm run by Deepinder Goyal, has made the necessary adjustments to its answer to the Goods and Services Tax (GST) order issued by the assistant commissioner of revenue from the West Bengal government. The order was for a total of INR 9.85 crore from April 2020 to March 2021.

The corporation has decided to file an appeal against the order rather than pay the amount that was ordered. According to the filing that Zomato made with the exchange, the company believes that it has a compelling case on merits and that it will be appealing the order to the relevant authority. In an earlier filing with the exchange, Zomato made a mistaken statement that the company is obligated to pay the GST authorities the applicable sums.

What Exactly Did Zomato State in Its Recent Filing?

Zomato disclosed in its September 13 filing that it had received an order from the Assistant Commissioner of Revenue, Government of West Bengal, for the period April 2020 to March 2021. The order confirmed the demand for GST in the amount of Rs 5,59,54,319/-, with an interest of INR 3,69,67,792/- (Three Crores Sixty Nine Lacs Sixty Seven Thousand Seven Hundred and Ninety Two Rupees Only) and a penalty of INR 55,95,432/- ( Fifty Five Lacs Ninety Five Thousand Four Hundred and Thirty Two Rupees Only).

The demand order has been obtained in regard to the non-payment of the Goods and Services Tax (GST) on delivery charges, as well as interest and penalties accordingly.

Profits for Zomato in the First Quarter of FY25

On the first of August, the food delivery company Zomato made an announcement on its profitability for the quarter that spanned April to June of the fiscal year 2024-25. A company saw its consolidated net profit increase to INR 253 crore in the first quarter of the fiscal year 2025 from INR 2 crore in the same time the previous year.

As per a survey conducted by a media house, it indicated that the company's profit after tax for the quarter was INR 253 crore. It was reported that Zomato's revenue from operations in the reporting quarter was INR 4,206 crore, which is higher than the survey poll forecast of INR 3,9826 crore. In comparison, Zomato's revenue from operations in the same quarter a year earlier was INR 2,416 crore.

According to the analytics provided by the BSE, Zomato has a market cap of INR 2.41 lakh crore. The company is included in the BSE 100 index as one of its parts. According to Goldman Sachs, the market price of Blinkit, the Quick-commerce platform that Zomato purchased in 2022 for a total of $568 million, is currently at $13 billion. In terms of valuation, this translates to a remarkable sixfold gain from the previous year to the current year.