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Zomato Slapped With 4-Year-Old GST Notice Worth ₹9.45 Crores

On June 29, Deepinder Goyal’s Zomato received a Rs 9.45 crore GST penalty notice from the Karnataka tax regulator for FY 2019-20. Zomato plans to appeal, claiming a strong case with no expected financial impact.

By Rashaad Ather
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Deepinder Goyal - Zomato CEO And Founder

Deepinder Goyal - Zomato CEO And Founder

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Deepinder Goyal’s Zomato has revealed in its BSE exchange filing that the Gurgaon-based food delivery business received a Rs 9.45 Cr GST penalty notice from the Karnataka tax regulator on June 29.

Zomato has reportedly availed excess levied money off input tax credit (ITC) and interest.

The notice pertains to FY 2019-20 and is issued by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka. 

The GST notice consists of Rs 5,01,95,462, along with interest of  Rs 3,93,58,743, and a penalty of Rs 50,19,546, amounting to a total of Rs 9,45,73,751.

Court Appeal:

Zomato says it will appeal the order it received on June 29 regarding "excess availment of input tax credit and interest, penalty thereon."

“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”. 

Zomato responded to a show cause notice, providing clarification, but the authorities did not consider it. 

The company believes it has a strong case and expects no financial impact. 

It has received multiple similar demands from GST authorities previously, including a demand for Rs 11.82 crore and another for Rs 23 crore.