Zomato the food delivery company has received a GST (Goods and Service Tax) demand notice of Rs 9.5 cr, the company informed the exchange in a filing on Sunday. The company stated that it received a notice order on Saturday demanding a substantial amount of GST, totaling INR 5,01,95,462, along with additional interest and penalties from Assistant Commissioner of Commercial Taxes (Audit) Karnataka.
The authority has demanded for GST of Rs 5.01 cr, interest of Rs 3.93 cr and a penalty of Rs 50.19 lac making a total of demand of Rs 9.5 cr. "The Company has received an order for FY 2019-20 pursuant to the audit of GST returns and accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka raising demand of GST of Rs 5,01,95,462, along with interest of Rs 3,93,58,743/- and penalty of Rs 50,19,546" said Zomato.
The company said that it responded to the show cause notice with detailed explanations supported by relevant documents and judicial precedents. However, the authority is not satisfied with the company's response. The company also informed the exchange that the tax notice does not have any significant financial impact on the company.
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"The Company believes that it has a strong case to defend the matter before the relevant appellate authority and does not expect any financial impact on the company," said Zomato. The shares of the company closed at Rs 199.80 on Friday.
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