An app for online meal deliveryGujarat’s Deputy Commissioner of State Tax has sent Zomato a goods and services tax (GST) penalty notice, titled “an order for FY2018-19 pursuant to the audit of GST returns and accounts.” A regulatory document made to the stock exchanges states that the demand order was obtained in relation to the overuse of input tax credits and the underpayment of GST.
‘’The company has received an order for FY 2018-19 pursuant to the audit of GST returns and accounts by the Deputy Commissioner of State Tax, Gujarat raising demand of GST of ₹4,11,68,604/-, along with applicable interest and penalty totaling to ₹8,57,77,696,” stated Zomato in an exchange filing.
Zomato claims that the company addressed all the points raised in its show cause notice and provided pertinent documents, circulars, and other information that the authorities did not seem to have taken into account in their decision.
‘’The company believes that it has a strong case to defend the matter before the appellate authorities without any financial impact,” added the venture.Ant Financial Group, which is a division of Alibaba, the massive Chinese e-commerce company, is the parent company of Antfin Singapore Holding Pte. Antfin Singapore Holding Pte offloaded more than 17,63,95,675 shares in two tranches, representing a 2.02% holding in Zomato, according to the bulk trade data on the BSE.
Along with interest and penalties on the delivery fee collection from its customers from October 29, 2019 to March 31, 2022, Zomato has received a show cause notice of ₹402 crore for unpaid GST on delivery costs in December 2023.
