News Karnataka
Thursday, April 18 2024

Zomato Faces GST Notice of INR 23.26 Cr from Karnataka Tax Authorities

Tiger Global exits Zomato offloads its shares worth Rs 11K cr
Photo Credit : File photo

In a recent regulatory filing, foodtech giant Zomato disclosed receiving a goods and services tax (GST) notice amounting to INR 23.26 Cr for the financial year 2018-19 (FY19) from Karnataka tax authorities. The order stipulates a GST payment of INR 11.27 Cr, coupled with additional interest and penalty charges.

Zomato explained that the notice, received on March 30, pertains to the overutilization of input tax credit and associated interest and penalty charges. Despite providing clarifications supported by relevant documents and legal precedents in response to the show cause notice, the authorities issued the order without fully considering the furnished information.

Consequently, Zomato intends to contest the order before the appropriate authorities, expressing confidence in its ability to defend the matter without anticipating any financial impact on the company.

This development follows a series of tax-related challenges for Zomato. Recently, the company faced a GST penalty notice from Gujarat’s Deputy Commissioner of State Tax, amounting to INR 8.57 Cr, and a show cause notice of INR 401.7 Cr from the Directorate General of GST Intelligence, Pune Zonal Unit.

Despite these challenges, Zomato reported its second consecutive profitable quarter, with a significant increase in profit after tax during the September quarter of the financial year 2023-24. However, the company’s shares opened at INR 182.35 on Monday, indicating the market’s reaction to the latest GST notice.

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