Zomato Faces ₹23.26 Crore GST Demand, Plans Legal Challenge

1 Apr 2024 , 01:34 PM

Zomato Limited disclosed receiving a GST order from the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka, pertaining to the financial year 2018-19.

The order demands a GST payment of ₹11,27,23,564, with additional interest and penalty charges totaling ₹23,26,64,271. Zomato described the action as an Adjudication Order passed under Section 73(9) of the CGST Act, 2017 and KGST Act, 2017.

The company received the order and related communications on March 30, stating it relates to excess input tax credit availed, interest, and penalty.

Despite responding to the show cause notice with clarifications and legal precedents, Zomato expressed dissatisfaction with the authorities’ consideration of their information.

Zomato intends to challenge the order before appropriate authorities and recently faced a GST penalty notice of ₹8.6 Crore in Gujarat.

At the time of writing, Zomato’s stock traded at ₹185.30 apiece on the BSE, reflecting a 1.62% increase from the previous day’s close.

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