Zomato gets GST penalty notice of ₹8.6 crore from Gujarat’s Deputy Commissioner of State Tax
Online food delivery app Zomato has received a goods and services tax (GST) penalty notice from Gujarat’s Deputy Commissioner of State Tax, ‘an order for FY2018-19 pursuant to the audit of GST returns and accounts’. According to a regulatory filing to the stock exchanges, the demand order has been received in respect of excess availment of input tax credit and short payment of GST.
‘’The company has received an order for FY 2018-19 pursuant to the audit of GST returns and accounts by the Deputy Commissioner of State Tax, Gujarat raising demand of GST of ₹4,11,68,604/-, along with applicable interest and penalty totaling to ₹8,57,77,696,” said Zomato in its exchange filing.
The company in its response to the show cause notice had clarified on all the issues along with relevant documents, circulars etc. which appears to not have been fully considered by the authorities while passing the order, according to Zomato.
Also Read: Zomato CEO Deepinder Goyal becomes proud owner of India’s first Aston Martin DB12 sportscar
‘’The company believes that it has a strong case to defend the matter before the appellate authorities without any financial impact,” said Zomato in its statement. In another development, Antfin Singapore Holding on March 6 pared a two per cent stake in online food delivery firm Zomato for ₹2,827 crore through open market transactions.
Antfin Singapore Holding Pte is an affiliate of Ant Financial Group, while the latter is a part of Chinese e-commerce giant Alibaba. According to the bulk deal data on the BSE, Antfin Singapore Holding Pte offloaded more than 17,63,95,675 shares in two tranches, representing a 2.02 per cent stake in Zomato.
Meanwhile, Zomato had also received show cause notice worth ₹402 crore for unpaid GST on delivery charges in December 2023, in addition to interest and penalty on the delivery fee collection from its customer from the period of 29 October 2019 to 31 March 2022.
On Friday, March 15, shares of Zomato settled 4.68 per cent higher at ₹159.90 apiece on the BSE.
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Published: 16 Mar 2024, 08:22 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.