Zomato gets GST demand of ₹803 crore, including interest and penalty – CNBC TV18

Food delivery aggregator Zomato Ltd on Thursday (December 12) said it has received an order from the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra, demanding ₹401.7 crore in goods and services tax (GST) for the period between October 29, 2019, and March 31, 2022.

The order, passed on November 12, 2024, also includes a penalty of the same amount, totalling ₹803.4 crore in demand, along with applicable interest.

“…this is to inform that the company has received an order on 12 December 2024 which is dated 12 November 2024 for the period 29 October 2019 to 31 March 2022 passed by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra confirming the demand of GST of ₹401,70,14,706 with interest as applicable and penalty of ₹401,70,14,706,” Zomato said in a regulatory filing.

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The demand pertains to alleged non-payment of GST on delivery charges. “The demand order has been received in respect of non-payment of GST on delivery charges with interest and penalty thereon,” it said.

Despite the order, Zomato remains confident about the strength of its case and intends to challenge the decision. In a statement, Zomato said, “We believe that we have a strong case on merits, supported by opinions from our external legal and tax advisors. We will be filing an appeal against this order before the appropriate authority.”

Shares of Zomato Ltd ended at ₹284.90, down by ₹6.90, or 2.36%, on the BSE.

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