A GST notice worth Rs 23.26 cr for the FY 2018-19 has been received by Zomato from Karnataka tax authorities, the company mentioned in a regulatory filing.
The order mandates a Goods and Services Tax payment of Rs 11,27,23,564, including additional interest and penalty charges totalling Rs 23,26,64,271, as per the filing.
“According to Regulation 30 of the Listing Regulations, this is to announce that the company has obtained an order for the FY 2018-19 under the audit of GST returns and accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka asking GST Demand of Rs 11,27,23,564, including an applicable interest and penalty totaling to Rs 23,26,64,271,” said the company.
The Gurugram-based food delivery said it obtained the order via the authority on March 30, which connects to the overutilisation of input tax credit and interest, penalty subsequently.
Zomato reported that even after answering the show cause notice, which possessed clarifications reinforced by relevant documents and legal precedents, the authorities needed to fully consider this data while issuing the order.
The company intends to appeal against the order before the appropriate authority. “We have a strong case on values and the company shall file an appeal against the order to the appropriate authority,” it added.
Zomato earlier this month received a notice from the Deputy Commissioner of State Tax of Gujarat. The penalty was concerning the audit of the company’s GST returns and accounts for FY 2018-19.
When distinct startups have reportedly obtained notices of income tax in recent weeks concerning venture capital raised via them.
Under Section 68 of the Income Tax Act, the notices served clubbed the investments obtained via such firms with the income made through them, and tax and penalties have been charged on the combined amount, as per the reports.
