Deepinder Goyal's Online food delivery aggregator Zomato has received a fresh GST demand order along with interest and penalty amounting to Rs 17.7 crore. The demand order is for non-payment of GST on delivery charges and interest, and penalty thereon. The company received from the Assistant Commissioner of Revenue, West Bengal.
The online food delivery giant has been receiving tax demand orders from various authorities in the recent past. Despite this, the company shares continue to rise. It was closed at Rs 275.25 on NSE on Wednesday. The market cap of the company is Rs 2.40 lakh crore, as of September 18.
"We believe that we have a strong case on merits and the Company will be filing an appeal against the order before the appropriate authority," Zomato said in a regulatory filing. The order is for the period April 2021 to March 2022 passed by Assistant Commissioner of Revenue, Government of West Bengal confirming demand of GST of Rs 11,12,79,712 with interest of Rs 5,46,81,021 and penalty of Rs 1,11,27,971.
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"The Company in its response to the show cause notice had clarified on the issue along with relevant documents and judicial precedents, which appears to not have been appreciated by the authorities while passing the order," Zomato said. The company believes that it has a strong case to defend the matter before the relevant appellate authority and does not expect any financial impact on the Company, it added.
(With inputs from PTI)
