Zomato, a prominent player in food delivery and quick commerce, disclosed receiving a tax demand notice totaling Rs 9.5 crore from the Karnataka commercial tax authority. This sum includes interest and penalties and relates to an audit of GST returns for the financial year 2019–20.
In response, Zomato has confirmed its intent to appeal the order, expressing confidence in its position. “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,” stated Zomato in a regulatory filing.
The tax demand primarily concerns the availability of excess input tax credit, with Zomato asserting that it had provided comprehensive clarifications and supporting documentation during the audit process. Despite the notice, Zomato assured stakeholders that it anticipates no significant financial impact from this development.
This is not the first instance of Zomato facing tax scrutiny. In April 2023, the company received a tax notice amounting to Rs 11.82 crore related to GST on export services. Similarly, in April 2024, another demand of Rs 23 crore was issued for excess input tax credit under GST regulations.
Zomato remains proactive in addressing these tax matters, emphasizing its commitment to contesting adverse rulings to safeguard its financial interests and operational integrity.