In a new twist, Zomato, the popular online food delivery service, is facing fresh scrutiny from tax authorities. Recently, a sales tax officer in Delhi issued an order demanding over Rs 2 crore, which includes a GST demand of Rs 2,22,91,376 and interest totaling Rs 2,08,98,164 for the period between April 2018 and March 2019. Moreover, the company is slapped with a penalty of Rs 22,29,136.
Zomato recently confirmed in a regulatory filing to the stock exchange that it indeed received the order from the Sales Tax Officer, Ward 300, Delhi. The filing stated, “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.”
Expressing its position, the foodtech giant announced its plan to contest 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 latest development closely follows another setback for Zomato in the form of a recent GST demand and penalty worth Rs 11.81 crore, received just last month. The previous order included a GST demand of Rs 5.9 crore, coupled with a penalty of the same amount, covering the period from July 2017 to March 2021.
Zomato has been facing repeated encounters with tax authorities lately. Earlier this month, the company revealed receiving notices from tax authorities in Delhi and Karnataka regarding alleged short payments of GST in 2018, amounting to a total of Rs 4.2 crore.
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