Zomato Receives Rs 9.5 Crore Tax Demand, Plans to Appeal Against Order 

Zomato, a food delivery and quick commerce company, announced in a regulatory filing that it has received a tax demand notice amounting to Rs 9.5 crore. This includes interest and penalties from the Karnataka commercial tax authority. 

The company stated that it plans to appeal against this demand. In a regulatory filing, the company said, “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.” 

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Under the audit of GST returns and accounts, the tax order was received by the company for the financial year 2019–20. Regarding the excess availability of input tax credit and the corresponding interest and penalty, a demand order has been obtained by the company, as per the regulatory filing. 

In response to the showcause notice issued to Zomato, the company “clarified on the issue along with relevant documents and judicial precedents, which appears to not have been appreciated by the authorities while passing the order.” 

Zomato also said in a company statement that it does not believe that this would have a financial impact on the company. Zomato received tax notices earlier as well. On April 20, this year, the food delivery giant got a tax notice of Rs 11.82 crore. 

According to the Gurgaon-based company, the demand order relates to goods and services tax (GST) on export services from July 2017 to March 2021. It further stated that it would challenge the ruling. The tax was calculated based on the export services it offered to its subsidiaries outside of India. 

Similarly, the Karnataka commercial tax authority issued a tax demand of Rs 23 crore to Zomato in April this year. Under the Goods and Services Tax Regulation, a tax notice was issued to claim excess input tax credit.