Zomato faces fresh GST demand and penalty worth over Rs 2 crore

In a recent development, online food delivery giant Zomato has found itself in the crosshairs of tax authorities yet again. The company has received a demand and penalty order exceeding Rs 2 crore from a sales tax officer in Delhi.

The order, spanning from April 2018 to March 2019, includes a GST demand of Rs 2,22,91,376 along with accrued interest amounting to Rs 2,08,98,164. Additionally, a penalty of Rs 22,29,136 has been imposed.

Zomato, in a regulatory filing with the stock exchange, confirmed receipt of the order from the Sales Tax Officer, Ward 300, Delhi. "The Company has received an order for the period April 2018 to March 2019 passed by the Sales Tax Officer, Ward 300, Delhi confirming the demand of GST of Rs 2,22,91,376 with interest of Rs 2,08,98,164 and penalty of Rs 22,29,136," stated the filing.

Asserting its stance, the foodtech behemoth announced its intention to challenge the order. "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," Zomato mentioned.

This development comes hot on the heels of a previous GST demand and penalty order amounting to Rs 11.81 crore, received by Zomato just last month. The earlier order encompassed a GST demand of Rs 5.9 crore alongside an equivalent penalty for the period spanning July 2017 to March 2021.

Zomato's recent encounters with tax authorities have been frequent. Earlier this month, the company disclosed receiving notices from tax authorities in Delhi and Karnataka concerning alleged short payments of GST in 2018, totalling Rs 4.2 crore.