Zomato faces penalty order, GST demand of Rs 11.81 crore

New Delhi: Zomato, an online meal delivery business, has been hit with a penalty order and goods and services tax (GST) demand totalling Rs 11.81 crore.

The order calls for a GST demand of Rs. 5.9 crore as well as a penalty of the same amount for the period of July 2017 through March 2021.

"The company has received an order for the period July 2017 to March 2021 passed by Additional Commissioner, Central Goods and Services Tax, Gurugram raising demand of GST of Rs 5,90,94,889 with applicable interest (not quantified) and penalty of Rs 5,90,94,889," Zomato said in a stock exchange regulatory filing, IANS reported.

Earlier this month, the food delivery platform had said it received notices from the tax authorities in Delhi and Karnataka over alleged short payment of GST in 2018 amounting to Rs 4.2 crore.

The company had said it would appeal against the tax demand notices.

Zomato registered Rs 125 crore in profit in the third quarter (Q3) of the last financial year (FY24) -- an improvement by Rs 390 crore as compared to the same quarter last year.

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