The corporate will enchantment in opposition to the tax demand notices, Zomato mentioned in a submitting with inventory exchanges.
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Zomato mentioned it was issued show-cause notices earlier over these calls for and that it had submitted its response. However “authorities in Delhi and Karnataka appear to have issued the above orders dated December 30 and 31, 2023 with out giving due consideration to our response submitted earlier”, it mentioned.
Three orders have been issued. The primary one, issued by the Delhi gross sales tax workplace, pertains to alleged quick cost of GST in annual returns and non-reversal of enter tax credit score in case of exempted provides, it mentioned. This order raises a requirement of Rs 2.3 crore, together with penalty.
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Zomato mentioned it has made the funds and submitted the paperwork supporting its case in its response. It added that it has “a very good case to defend the matter earlier than the appellate authorities with none monetary influence”.
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Within the second case, Zomato mentioned it would pay Rs 40,611 as extra curiosity on the declare that it incorrectly calculated the curiosity quantity to be paid to the federal government on extra enter tax credit score reversed by the corporate.Additionally learn | ETtech Explainer: The Rs 402 crore GST discover that despatched Zomato’s shares tumbling
Within the third tax demand, which has similarities to a Rs 402 crore show-cause discover issued to it by the GST authorities, the Karnataka GST division has sought Rs 1.9 crore together with penalties and curiosity.
On December 28, ET reported that Zomato acquired a discover over Rs 402 crore of alleged unpaid GST on supply charges collected from clients. The Gurgaon-based firm had mentioned it was not liable to pay these taxes because it solely collects charges on behalf of its supply companions. Zomato plans to problem this discover as nicely.