Zomato disclosed that it received an order demanding a GST of Rs 4,11,68,604 along with applicable interest and penalty totalling to Rs 8,57,77,696 for the financial year 2018-19.
Online food delivery platform, Zomato, is facing a Goods and Services Tax (GST) penalty notice from the Deputy Commissioner of State Tax of Gujarat. The penalty is in relation to the audit of the company’s GST returns and accounts for the financial year 2018-19. The demand order Zomato has received is due to the excess availment of input tax credit and short payment of GST.
According to the regulatory filing to the stock exchanges, Zomato disclosed that it received an order demanding a GST of Rs 4,11,68,604 along with applicable interest and penalty totalling to Rs 8,57,77,696 for the financial year 2018-19.
‘’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 Rs 4,11,68,604/-, along with applicable interest and penalty totaling to Rs 8,57,77,696,” Zomato said in its exchange filing.
In response to the notice, the company clarified all the issues and provided relevant documents, circulars etc. Zomato stated that these do not appear to have been fully accounted for by the authorities while passing the order.
“The company believes that it has a strong case to defend the matter before the appellate authorities without any financial impact,” said Zomato in its statement.