Zomato Receives ₹8.57 Crore GST Notice: Gujarat Tax Department’s Demand Amid ₹1.39 Lakh Crore Market Cap

Food delivery company Zomato has been slapped with GST orders exceeding Rs 8.57 crore. The Deputy Commissioner of Gujarat State Tax has issued this order to the company regarding the financial year 2018-19.

Zomato has stated in its regulatory filing that it has been directed to pay GST of Rs 4,11,68,604 for the orders. Additionally, it has been instructed to pay interest of Rs 4,04,42,232 and a penalty of Rs 41,66,860. The total amount stands at Rs 8,57,77,696. This order has come after GST return and accounts audit.

Zomato Fined for Underpayment of GST

Zomato has stated that the GST order was issued under Sections 73 of the CGST Act 2017 and GGST Act 2017. It has been mZomato faces ₹8.57 crore GST notice from Gujarat tax department amidst its ₹1.39 lakh crore market cap.entioned in the order that during the audit, it was found that the company had claimed excess input tax credit and had underpaid GST. This is the reason behind the issuance of the GST order.

Zomato to Challenge GST Order

Zomato has stated that it had provided clarity on all issues, including relevant documents and letters, in response to the show-cause notice. However, it seems that officials did not fully consider these aspects while passing the orders. Zomato has further stated that it will challenge the order before the appropriate authorities.

Zomato’s share closed at Rs. 159.90 on Friday (March 15) with a 4.68% increase. The company’s market cap stands at Rs. 1.39 trillion. Its shares have seen a 191.26% increase in the past year, attracting investors.

Zomato Reports Robust Net Profit of INR 138 Crore in Q3FY24

Zomato announced its financial results for the third quarter (October-December) of the fiscal year 2023-24 on February 8. The company recorded a robust net profit of INR 138 crore in Q3FY24.

In the same quarter of the previous year (Q3FY23), the company had incurred a loss of INR 346.6 crore. During the same period, the company witnessed a quarterly growth of 283% in net profit. In the last quarter, i.e., Q2FY24, Zomato had reported a net profit of INR 36 crore.