Zomato shares in focus as online food delivery platform receives Rs 184 crore GST notice

Shares of Zomato Ltd will be in focus on Tuesday morning after the online food delivery platform said it received a Rs 184.18 crore GST demand from Commissioner, Adjudication, Central Tax, New Delhi, on account of non-payment of service tax for the period October 2014 to June 2017 for certain sales made by the foreign subsidiaries and branches of the company to its customers located outside India.

"Order passed under Section 73(1) of the Finance Act, 1994 for an amount of Rs 92,09,90,306/-, applicable interest (not quantified) and penalty of Rs 92,09,90,306," Zomato said in a BSE filing.

Zomato said it has a strong case on merits and the company will be filing an appeal against the order before the appropriate authority.

Zomato had earlier received a tax demand and penalty worth Rs 23.26 crore from Karnataka tax authorities. In that case also, Zomato felt it has a strong case on merits.

"The demand order has been received confirming demand on account of non-payment of service tax for the period October 2014 to June 2017 determined basis certain sales made by the foreign subsidiaries and branches of the company to its customers located outside India. The company in its response to the show cause notice had clarified on the allegations along with supporting documents and judicial precedents, which appears to not have been appreciated by the authorities while passing the order," Zomato said.

Zomato said it has a strong case to defend the matter before the relevant appellate authority and does not expect any financial impact on the company.