May 2nd 2024.
The popular online food delivery platform, Zomato, has recently been served with a new notice from the sales tax officer in Delhi. The notice includes a demand for goods and services tax amounting to more than Rs 2 crore, along with a hefty penalty. This order pertains to the period between April 2018 to March 2019.
According to a stock exchange regulatory filing, Zomato has confirmed the receipt of this order from the Sales Tax Officer of Ward 300 in Delhi. The total amount demanded is Rs 2,22,91,376, with an added interest of Rs 2,08,98,164 and a penalty of Rs 22,29,136. This news has certainly raised some eyebrows among the company's stakeholders and investors.
However, Zomato has not taken this order lying down. In fact, the foodtech major has stated that it will be filing an appeal against the order before the appropriate authority. The company believes that it has a strong case on its side and is confident of a positive outcome.
This is not the first time that Zomato has faced such a situation. Just last month, the company was served with a GST demand and penalty order worth a whopping Rs 11.81 crore. The order included a demand of Rs 5.9 crore for GST and an equal amount in penalty for the period between July 2017 to March 2021.
It seems like the tax authorities are keeping a close eye on Zomato's financial activities. Earlier this month, the company had also received notices from the tax authorities in Delhi and Karnataka for alleged short payment of GST amounting to Rs 4.2 crore in 2018. However, Zomato has assured its stakeholders that it is taking all necessary steps to address these notices and is confident of resolving the matter in its favor.
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