Online food delivery platform Zomato, in a regulatory filing on Thursday said that it has received a tax demand of ₹803.4 crore, including interest and penalty from the GST department in Thane.
The demand order has been received in respect of non-payment of GST on delivery charges with interest and penalty thereon, the company said adding that it will file an appeal.
“… Company has received an order on 12 December 2024 … for the period 29 October 2019 to 31 March 2022 passed by Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra, confirming demand of GST of ₹401,70,14,706 with interest as applicable and penalty of ₹401,70,14,706,” the food delivery aggregator said in the filing.
“We believe that we have a strong case on merits, which is backed by opinions from our external legal and tax advisors. The company will be filing an appeal against the order before the appropriate authority,” it added.
This is the latest challenge for Zomato which, along with its rival Swiggy, is facing antitrust scrutiny for allegedly violating competition laws and being baised towards selected restaurants listed on their platforms.
In December last year, the tax department had asked the Deepinder Goyal-led company why the order along with the penalty should not be levied.
At that time Zomato had countered “is not liable to pay any tax since the delivery charge is collected by the company on behalf of the delivery partners” and “delivery partners have provided the delivery services to the customers and not the company”.
Stock Surge
Blame it on the booming food “order-in” activity and a spike in quick-commerce – where cosmetics to milk are being delivered in under 10 minutes – Zomato’s shares have more than doubled so far this year.
Shares of Zomato settled at ₹288.40 apiece on BSE on Friday, up 1.23% from its previous close.
(With inputs from agencies)