Zomato served with Rs 9.5 Crore GST notice in Karnataka, Company to appeal against the notice

Listed food delivery giant Zomato has received a notice of tax demand by the Karnataka Commercial Taxes Authority worth Rs. 9.5 Crore. The above figure includes interest and tax penalty to be paid by the company. The company revealed these details in its filing of public bourses confirmed that it has decided to appeal the current tax demand of Rs. 9.5 Crore. The latest order was made in respect of the alleged excess availment of input tax credit by Zomato. This is not the first time that the food giant is being served with such kind of a notice. 

Previously on April 20, Zomato received a similar notice of Rs. 11.82 Crore for export services provided by the company to its subsidiaries outside India. On April 1, it received notice worth Rs. 23 Crore from Karnataka Tax Authority and on March 15, it received a tax demand worth Rs. 8.6 Crore from Gujarat’s deputy Tax Commissioner.

“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.