Zomato, a leading online food delivery platform in India, has gained immense popularity since its inception. Founded by Deepinder Goyal, who is the company’s CEO, Zomato has seen substantial growth. As of July this year, Goyal joined the billionaire club, with a real-time net worth of USD 1.6 billion according to Forbes. The company’s market capitalization has reached Rs 2.20 lakh crore as of August 29.
GST Tax Demand Orders
On Thursday, Zomato received GST tax demand orders totaling over Rs 4.59 crore, including applicable interest and penalties, from authorities in Tamil Nadu and West Bengal. The demand includes:
- Tamil Nadu: An adjudication order under Section 73 of the Central Goods and Services Tax Act, 2017, and the Tamil Nadu Goods and Services Tax Act, 2017, for GST of Rs 81,16,518, with an additional penalty of Rs 8,21,290. The interest amount was not specified.
- West Bengal: An adjudication order under Section 73 of the Central Goods and Services Tax Act, 2017, and the West Bengal Goods and Services Tax Act, 2017, for GST of Rs 1,92,43,792, with interest of Rs 1,58,12,070 and a penalty of Rs 19,24,379.
Company’s Response and Future Steps
In response to the tax demands, Zomato stated that it plans to appeal against the orders issued by the Assistant Commissioner of GST and Central Excise in Tamil Nadu, and the Assistant Commissioner of Revenue in West Bengal. The company has submitted a detailed response, including relevant documents and judicial precedents, which it believes were not adequately considered by the authorities.
Zomato expressed confidence in its case, asserting that it does not anticipate any significant financial impact on the company. The company is prepared to defend its position before the relevant appellate authorities.
