Zomato hit with ₹9.45 crore GST notice, plans to appeal
What's the story
Zomato has been issued a Goods and Service Tax (GST) demand notice of ₹9.45 crore by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka, according to the company's BSE exchange filing. The tax order for the fiscal year (FY) 2019-20 is based on an audit of GST returns and accounts. The demanded amount includes a GST of ₹5.01 crore, an interest charge of ₹3.93 crore, and a penalty of ₹50.19 lakh.
Appeal planned
Zomato cites strong case
In response to the tax notice, Zomato has expressed its intention to contest the order. The company stated, "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." This isn't a first for Zomato. It recently received a similar tax notice from Gurugram's Additional Commissioner, Central Goods and Services Tax, demanding ₹11.82 crore inclusive of interest and penalty charges.
Information
Zomato's shares remain unaffected
Despite the tax notice, Zomato's shares showed resilience in the market. On Friday, June 28, the company's shares closed 0.10% higher at ₹200.35 compared to the previous close at ₹200.15. This comes after Zomato had previously expressed its intention to appeal against tax orders.