Why Zomato Received GST Notice of INR 8,57,77,696/-?


On March 16, 2024, The food delivery Jiant Zomato Ltd. informed BSE Limited, stating that the Company had received a GST order for FY 2018-19. The notice was received following the audit of GST returns and accounts by the Deputy Commissioner of State Tax, Gujarat raising demand of GST of INR 4,11,68,604/-, along with applicable interest and penalty totaling INR 8,57,77,696/-.

The company is bound to disclose this information as required under Regulation 30 of the Listing Regulations read with SEBI Circular dated July 13, 2023. Thus, the company has shared the below information in Annexure I with the Stock Exchange.

Annexure I

Name of the AuthorityDeputy Commissioner of State Tax, Range-10, Vadodara, Gujarat
Nature and details of the action(s) taken, or order(s) passedAdjudication Order passed under Section 73 of the CGST Act, 2017 and GGST Act, 2017 for an amount of INR 4,11,68,604/-, interest of INR 4,04,42,232/- and penalty of INR 41,66,860/- totalling to INR 8,57,77,696/-.
Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority15 March 2024 at 7:18 PM 
Details                  of                   the violation(s)/contravention(s) committed     or    alleged     to      be committed;The demand order has been received in respect of excess availment of input tax credit and short payment of GST on account of audit observations and interest, penalty thereon. The Company in its response to the show cause notice had clarified on all the issues along with relevant documents, circulars etc. which appears to not have been fully considered by the authorities while passing the order.
Expected financial implications, if any, due to compensation, penalty etc.The Company believes that it has a strong case to defend the matter before the appellate authorities without any financial impact.

Under Which GST Section the order has been issued by the GST?

According to the above annexure I, the order has been passed under Section 73 of the CGST Act, 2017 and GGST Act, 2017. Section 73 of the CGST Act deals with the below type of queries.

  • Determination of tax not paid
  • Determination of tax short paid
  • Determination of tax erroneously refunded or
  • Input tax credit wrongly availed or utilized for any reason other than fraud or any willful-misstatement or suppression of facts.

Ref. Scrip Code: 543320, Scrip Symbol: ZOMATO ISIN: INE758T01015

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