Zomato Slapped with Rs 803.40 Crore GST Demand Amid Growing Scrutiny

New Delhi (The Uttam Hindu): Zomato Ltd, the online food delivery platform, has received a tax demand notice from the Goods and Services Tax (GST) Department in Thane. The company announced on Thursday that it has been served a notice for Rs 803.4 crore, which includes GST dues, interest, and penalties. The notice pertains to non-payment of GST on delivery charges for the period between October 29, 2019, and March 31, 2022.

In response, Zomato stated that it intends to file an appeal, as it believes the case is strong, supported by the opinion of its external legal and tax advisors. The company clarified that the demand amounts to Rs 401.7 crore in GST, along with an equal amount in interest and penalties. Zomato’s spokesperson shared, "We believe we have a strong case and will file an appeal before the appropriate authority."

Zomato's Stock Market Performance

Despite facing this tax issue, Zomato’s stock saw a slight decline on Thursday, closing at Rs 284.90 after falling 2.36% on the Bombay Stock Exchange (BSE). In the last week, the stock dropped by 4.87%. However, investors with a longer-term perspective have seen positive returns, with the stock delivering over 9% growth in the past month. Over the past year, Zomato has experienced a remarkable 144% return. The company’s 52-week high stands at Rs 304.50, while its 52-week low is Rs 116.

Note: This is not investment advice. The stock market involves risks. Please consult a financial advisor before making any investment decisions.