Deepinder Goyal-led food delivery and quick commerce company, Zomato, received a GST demand of over Rs 9.45 crore, the company informed the bourses.
The company informed the exchanges that the order pertained to FY 2019-20 and was issued by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka. The demand comprised demand of GST of Rs 5,01,95,462, along with interest of Rs 3,93,58,743, and penalty of Rs 50,19,546, amounting to Rs 9,45,73,751 in total.
“We believe that we have a strong case on merits and the company will be filing an appeal against the order before the appropriate authority,” said Zomato.
Zomato received the order on June 29. It said that the demand order has been received in respect of “excess availment of input tax credit and interest, penalty thereon”.
The company in its response to the show cause notice clarified on the issue along with relevant documents and judicial precedents, which the authorities did not appreciate will passing the order, Zomato said.
“The company believes that it has a strong case to defend the matter before the relevant appellate authority and does not expect any financial impact on the company,” it said.
The company has received multiple similar demands from GST authorities, the previous one being on April 20 for a GST demand of Rs 11.82 crore for the export services provided by the company to its subsidiaries outside India. Just before that on April 1, it had received a tax demand with respect to availing of excess input tax credit aggregating to Rs 23 crore.
