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Zomato Limited, the Indian food delivery giant, disclosed it has received two GST-related demands for the financial year 2019-20. The tax demands, from authorities in Tamil Nadu and West Bengal, allege excess input tax credit usage and non-payment of GST on delivery charges, respectively.
The shares of Zomato Limited are trading at ₹250.03, down by ₹3.01 or 1.19 per cent, at 2.10 pm on the NSE.
The Tamil Nadu GST demand is for ₹81.16 lakh, plus interest, and a penalty of ₹8.21 lakh. The West Bengal demand is for ₹1.92 crore GST, ₹1.58 crore interest, and a penalty of ₹19.24 lakh.
Zomato maintains it has a strong case and plans to appeal both demands. The company believes there will not be any financial impact, citing support from external legal and tax advisors. The development comes even as Zomato continues to navigate the complex regulatory landscape of India’s rapidly growing food delivery sector.
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