01 April 2024 – The well-known meal delivery company Zomato has been hit with an astounding Rs 23 crore tax demand order. In a stock market statement on Sunday, the Gurgaon-based firm said that it had received a tax notice for claiming an excess input tax credit in accordance with the goods and services tax (GST) regulations.
According to an ET article, the business claimed that it had received a tax demand for Rs 23 crore from the Karnataka Commercial Tax Authority, along with interest and penalties.
As per an ET report, the corporation explained the matter with pertinent papers and legal precedents in its filed response to the show cause notice. However, when issuing the order, it seems that the authorities did not appreciate this explanation very much.
Conclusion
The deputy commissioner of state tax for Gujarat sent a notice on March 15 about Rs 8.6 crore, which is directly related to the latest tax demand of Rs 23 crore. These notifications are in addition to the many requests tax authorities throughout the country have made to Zomato. Authorities in Delhi and Karnataka sent the corporation three demand notices in December 2023, claiming that they were shortpaid by Rs 4.2 crore in GST in 2018.
