Zomato Faces Fresh GST Demand and Penalty of Over Rs 2 Crore

Zomato receives a demand and penalty order exceeding Rs 2 crore from a sales tax officer in Delhi.

  • Zomato receives a demand and penalty order exceeding Rs 2 crore from a sales tax officer in Delhi.
  • The order covers the period from April 2018 to March 2019, with a GST demand of Rs 2,22,91,376, accrued interest of Rs 2,08,98,164, and a penalty of Rs 22,29,136.
  • Zomato intends to challenge the order, citing a strong case on merits and plans to file an appeal before the appropriate authority.

In recent months, Zomato, the online food delivery giant, has been facing a series of encounters with tax authorities. The latest development involves a demand and penalty order of over Rs 2 crore from a sales tax officer in Delhi. This order, spanning from April 2018 to March 2019, includes a substantial GST demand along with accrued interest and a penalty.

Zomato, in response, has confirmed receiving the order and expressed its intention to challenge it. The company asserts that it believes it has a strong case on merits and plans to file an appeal before the appropriate authority. This incident follows closely on the heels of a previous GST demand and penalty order amounting to Rs 11.81 crore received by Zomato just last month.

The foodtech company’s recent encounters with tax authorities seem to be growing in frequency. Earlier this month, Zomato disclosed receiving notices from tax authorities in Delhi and Karnataka regarding alleged short payments of GST in 2018, totaling Rs 4.2 crore. As Zomato navigates these challenges, its interactions with tax authorities continue to draw attention.