18 March 2024 – The Gujarat Deputy Commissioner of State Tax has issued Zomato a GST penalty notice. The penalty is related to the company’s 2018-19 GST return and account audit. The demand order Zomato received concerns excess input tax credit and GST underpayment.
Zomato reported to stock markets that it received an order for Rs 4,11,68,604 in GST, interest, and penalties for the 2018-19 financial year. In its exchange filing, Zomato stated that the Deputy Commissioner of State Tax, Gujarat, audited GST returns and accounts and ordered a GST demand of Rs 4,11,68,604/-, along with interest and penalties totalling Rs 8,57,77,696 for FY 2018-19.
After receiving notice, the corporation clarified all issues and provided appropriate documents, circulars, etc. Zomato said the authorities may have needed to account for them when passing the directive adequately.
Conclusion
“The company believes that it has a strong case to defend the matter before the appellate authorities without any financial impact,” said Zomato in a statement. In another event, Antfin Singapore Holding, a subsidiary of Ant Financial Group and Alibaba, cut its Zomato investment by 2%. On March 6, the share was sold on the open market for Rs 2,827 crore. According to BSE bulk trade data, Antfin Singapore Holding Pte sold more than 17,63,95,675 shares in two parts, reducing their Zomato ownership by 2.02%.
