The multinational online food delivery platform Zomato has been charged a GST demand and penalty order amounting to Rs.11.81 crores. The order includes GST demand worth Rs 5.9 crore and a penalty of Rs 5.9 crore for the period between July 2017 and March 2021 as per a report in ANI.
“The company has received an order for the period July 2017 to March 2021 passed by Additional Commissioner, Central Goods and Services Tax, Gurugram raising demand of GST of Rs 5,90,94,889 with applicable interest (not quantified) and penalty of Rs 5,90,94,889,” Zomato said in a stock exchange regulatory filing.
In the beginning of May, the delivery platform had informed that tax authorities in Delhi and Karnataka had sent him notices about deduction of GST for 2018 amounting to Rs 4.2 crore.
The company’s current strategy regarding the imposition is yet to be discussed. However, the company’s representatives have said that it will challenge the tax-demand notices in the court of law.
Zomato stood on the platform of a Rs. Profits amounted to 125 crore in Q3 of financial year 2023-24, the last. This is an increase of 30% or approximately Rs. In contrast to the previous financial year 2022-23, the company reported a decline in net profit by 23.2% or 390 crores in the current quarter.
Zomato is an Indian multinational organization which is into restaurant aggregation and food delivery. It was founded by two young entrepreneurs, Deepinder and Pankaj, in 2008.
