Zomato, a prominent player in the food delivery and rapid commerce industry, has issued a tax demand by the Karnataka commercial taxation authority. The claim, which includes interest and penalty, amounts to Rs 9.5 crore.
The company stated in its public statement on the stock exchanges that it would be submitting an appeal in response to the demand. The most recent order, for the fiscal year 2020, was issued due to the firm’s over-utilisation of input tax credit.
Zomato had already received numerous identical requests, with the most recent one being for Rs 11.82 crore on April 20. This demand was made for the export services that the company provides to its subsidiaries based outside of India.
Zomato has been issued a tax demand of Rs 23 crore by the Karnataka commercial taxes authorities on April 1, relating to the utilization of excessive input tax credit. The deputy commissioner of state tax, Gujarat, raised a claim worth Rs 8.6 crore on 15 March, which was comparable to the previous demand.
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Between December 30 and 31, 2023, the company was issued three demand orders by the authorities in Delhi and Karnataka. These orders indicated that the company had underpaid GST in 2018, totaling Rs 4.2 crore.
Zomato has also faced many tax requests related to the sales generated by its international subsidiaries. The company was issued a service tax demand and penalty order totaling over Rs 184 crore for the non-payment of service tax between October 2014 and June 2017.
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