Recently, Zomato, a prominent player in the food delivery industry, revealed that it has been served with a GST demand and penalty totaling Rs 11.81 crore, pertaining to the period from July 2017 to March 2021.
This disclosure was made on April 19, with Zomato specifically noting that the demand includes Rs 5.9 crore as GST dues and an equal amount in penalties.
Zomato clarified that this demand arose from a show cause notice regarding export services provided to its overseas subsidiaries during the mentioned time frame. The company stated that it responded to the notice with detailed clarifications, supported by relevant documents and legal precedents. Despite this, Zomato expressed disappointment that these submissions were seemingly overlooked or disregarded by the authorities when issuing the order.
Despite this setback, Zomato remains resolute and has expressed its intention to contest the decision by appealing to the appropriate appellate authority.
Following this announcement, Zomato’s stock saw a 1.78 percent rise, closing at Rs 188.50 on the National Stock Exchange ( NSE ) on April 19th. This proactive approach from Zomato reflects its dedication to maintaining its market position.
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