Zomato faces a penalty order and a GST demand of Rs 11.81 crore

Zomato, an online meal delivery business, has been hit with a penalty order and a goods and services tax (GST) demand of Rs 11.81 crore.

The ruling calls for a GST demand of Rs. 5.9 crore as well as a penalty of the same amount for the period of July 2017 through March 2021.

“The company has received an order for the period July 2017 to March 2021 passed by the Additional Commissioner, Central Goods and Services Tax, Gurugram, raising demand for GST of Rs 5,90,94,889 with applicable interest (not quantified) and penalty of Rs 5,90,94,889,” Zomato stated in a regulatory filing with the stock exchange.

The meal delivery service said earlier this month that it has received notifications from the tax authorities in Delhi and Karnataka about suspected underpayments of GST in 2018 totaling Rs 4.2 crore.

The business said it will file an appeal in response to the tax demand notifications.

In the third quarter of the most recent financial year (FY24), Zomato reported a profit of Rs 125 crore, up Rs 390 crore from the same period the previous year.