In response to this tax demand, Zomato has said that it will file an appeal on the appropriate platform.
The taste of food delivery aggregator Zomato turned sour on Thursday when the GST department in Thane made a demand of Rs 803.4 crore from it including interest and penalty. Zomato has given this information in a regulatory filing. According to PTI news, a demand order has been received regarding non-payment of GST along with interest and penalty on delivery charges.
The company will file an appeal
According to the news, in response to this tax demand, Zomato has said that it will file an appeal on the appropriate platform as it believes that its case is strong. Zomato said that the company has received an order on December 12, 2024. Passed by the Joint Commissioner of CGST and Central Excise, Thane Commissionerate, Maharashtra for the period 29 October 2019 to 31 March 2022, including penalty of Rs 401,70,14,706 along with applicable interest and penalty of Rs 401,70,14,706. The demand has been confirmed.
The company said – a strong case on merits
“We believe we have a strong case on the merits, supported by the opinions of our external legal and tax advisors,” the company said. The company will file an appeal against the order before the appropriate authority. Let us tell you, to meet its growth objective, Zomato has raised Rs 8,500 crore last month by selling equity shares to eligible institutional investors.
Consolidated net profit of Rs 176 crore
Zomato Ltd has reported a consolidated net profit of Rs 176 crore in the July-September quarter. The company’s integrated operating revenue during the period under review stood at Rs 4,799 crore. Its total expenditure during this period was Rs 4,783 crore whereas it was Rs 3,039 crore in the same period a year ago. Zomato said its September quarter and first half results cannot be compared with other quarters and half year results. In August, it had acquired Orbgen Technologies Pvt Ltd (OTPL) and Westland Entertainment Pvt Ltd (WEPL) from One97 Communications Ltd (Paytm).
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