Zomato, the online food ordering and delivery platform, disclosed in a filing on Sunday that it has received a GST (Goods and Service Tax) demand notice totaling ₹9.5 crore.
Received on Saturday, the notice from the Assistant Commissioner of Commercial Taxes (Audit) Karnataka demands ₹5.01 crore as GST, ₹3.93 crore as interest, and a penalty of ₹50.19 lakh.
Zomato stated that it has received an order for the fiscal year 2019-20 following an audit of GST returns and accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka. The order includes a GST demand of ₹5,01,95,462, along with interest amounting to ₹3,93,58,743 and a penalty of ₹50,19,546.
Zomato Ltd., the food delivery provider, stated in a BSE exchange filing that it received a Goods and Service Tax (GST) demand notice amounting to ₹9.45 crore from the Assistant Commissioner of Commercial Taxes (Audit), Karnataka.#zomato
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Zomato stated that the demand pertains to the fiscal year 2019-20 after an audit of GST returns and accounts. Despite providing detailed explanations and relevant documents in response to the show cause notice, the authority expressed dissatisfaction.
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Zomato expressed confidence that despite the notice, there will be no substantial financial impact and believes it has a robust defense for presentation to the appellate authority. The company’s shares concluded trading at ₹199.80 on Friday.
On Thursday, Zomato revealed its nationwide rollout of the ‘restaurant services hub,’ aiming to serve as a comprehensive solution for restaurants seeking to expand. The hub will provide essential services such as staffing and licensing support.
Zomato seeks to streamline restaurant operations by aiding in locating suitable venues, securing suppliers, acquiring essential licenses, and recruiting suitable staff.
Last week, Swiggy, Zomato’s competitor, introduced a new feature on its partner app designed to link restaurants with staffing specialists, facilitating the recruitment of skilled professionals for diverse positions.
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