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Online food delivery app Zomato has received a Goods and Services Tax (GST) penalty notice from the Deputy Commissioner of State Taxes, Gujarat, “an order for the financial year 2018-19 pursuant to audit of returns and “GST accounts”. According to a regulatory filing to the stock exchanges, the demand order was received in respect of overutilization of input tax credit and underpayment of GST.
”The company received an order for the financial year 2018-19 pursuant to the audit of GST returns and accounts by the Deputy Commissioner of State Taxes, Gujarat, which increased the demand for GST from $4,11,68,604/-, along with applicable interest and penalties totaling $8,57,77,696”, Zomato said in its exchange filing.
According to Zomato, the company, in its response to the show cause notice, clarified all the issues along with the documents, circulars, etc. pertinent, which appears not to have been fully considered by the authorities when approving the order.
Also read: Zomato CEO Deepinder Goyal proud to own India’s first Aston Martin DB12 sports car
“The company believes it has a strong case to defend the matter before the appellate authorities without any financial impact,” Zomato said in its statement. In another development, Antfin Singapore Holding on March 6 cut a two per cent stake in online food delivery company Zomato to $2,827 crore through open market transactions.
Antfin Singapore Holding Pte is a subsidiary of Ant Financial Group, while the latter is part of the Chinese e-commerce giant Alibaba. According to massive trading data on the BSE, Antfin Singapore Holding Pte offloaded over 17,63,95,675 shares in two tranches, representing a 2.02 per cent stake in Zomato.
Meanwhile, Zomato had also received a worthwhile show cause notice. $402 crore unpaid GST on delivery charges in December 2023, in addition to interest and penalty on collection of delivery fee from its customer during the period from October 29, 2019 to March 31, 2022.
On Friday, March 15, Zomato shares closed up 4.68 percent in $159.90 each on the BSE.
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