Zomato was fined a whopping Rs 5019546 and was had to pay Rs 94500000

Zomato was fined a whopping Rs 5019546 and was had to pay Rs 94500000


The sales tax officer in Delhi sent the online meal delivery service a GST demand and a penalty order for more than Rs 2 crore last month.


A new Goods and Service Tax (GST) demand notice for around Rs 9.45 crore, together with interest and penalties, has been sent to the online meal delivery service Zomato.The demand was made, the business said in a stock regulatory recording, by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka.


"This means to let you know that the company has received an order for FY 2019-20 in accordance to the audit of GST returns as well as accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka educating demand of GST of Rs 5,01,95,462, together with interest of Rs 3,93,58,743 and penalty of Rs 50,19,546," Zomato stated in its filing with the BSE.


In response to the tax notice, the firm said, "We are convinced we have a strong case on merits and the company anticipates filing an appeal toward the order before the appropriate authority."


On Friday, Zomato's stock ended the day 0.10 percent higher at Rs 200.35.


The meal delivery firm has previously received tax notices. This is not the first time.


The sales tax officer in Delhi sent the online meal delivery service a GST demand and a penalty order for more than Rs 2 crore last month.


The order includes a GST demand of Rs 2,22,91,376 for the April 2018 to March 2019 period, together with interest of Rs 2,08,98,164 and a penalty of Rs 22,29,136. The business also got a Rs 11.81 crore GST demand and penalty order in April.


Zomato said earlier this month that company has received warnings from the tax authorities in Delhi and Karnataka about the purported underpayment of Rs 4.2 crore in GST in 2018.

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