Zomato Faces Rs 8.6 Crore GST Penalty Notice From Deputy Commissioner Of State Tax

New Delhi: Zomato, the popular online food delivery app has recently been served with a penalty notice for Goods and Services Tax (GST) by the Deputy Commissioner of State Tax in Gujarat. As per a disclosure made to the stock exchanges, Zomato has received a demand order due to the overutilization of input tax credit and 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 its exchange filing. (Also Read: Air India Laysoffs Over 180 Non-Flying Staff Jobs Due To VRS)

According to Zomato's explanation, the action taken is based on an Adjudication Order issued under Section 73 of the CGST Act, 2017, and GGST Act, 2017. This order requires payment of GST totaling Rs 4,11,68,604, along with interest amounting to Rs 4,04,42,232 and a penalty of Rs 41,66,860. These amounts together constitute the total sum mentioned. (Also Read: Flipkart Valuation Declines By Over Rs 41,000 Crore In Two Years)

Earlier, In December 2023, Zomato received a show cause notice of ₹402 crore for unpaid GST related to delivery charges. This notice also includes interest and penalty charges for the collection of delivery fees from customers between October 29, 2019, and March 31, 2022.