Zomato Wins Appeal, Rs 5.9 Crore GST Demand Dropped- Legal News, advawanti.com
Zomato, the well-known food and grocery delivery platform, announced on Tuesday that tax authorities have dropped a demand of ₹ 5.9 crore in unpaid Goods and Services Tax (GST). This positive development comes after the company received a favorable order from the Commissioner (Appeals) in Gurugram.
The demand, which was initially raised by the Additional Commissioner, Central Goods and Services Tax, Gurugram, covered the period from July 2017 to March 2021. Zomato had received the order last year, in April, and had contested the validity of the tax demand, stating that it found no merit in the claim.
Along with the tax dues, the total demand, including penalties, amounted to ₹ 11.82 crore. The tax was primarily based on the export services Zomato provided to its foreign subsidiaries.
While this issue has been resolved, Zomato is still in the process of appealing another significant tax notice. The company is currently disputing an ₹ 803 crore GST demand related to unpaid taxes for the period from October 29, 2019, to March 31, 2022.
Despite this positive outcome, Zomato’s stock saw a 1.6% decline on Tuesday, closing at ₹ 234.50 on the BSE. This was in contrast to a strong performance by the benchmark Sensex, which rose 1.8%. The stock market filing was made after trading hours.
Key Points:
- GST Demand Dropped: Zomato successfully contested a ₹ 5.9 crore GST demand for the period July 2017 to March 2021.
- Ongoing Disputes: Zomato is appealing an ₹ 803 crore GST demand related to unpaid taxes from 2019-2022.
- Stock Movement: Despite the legal win, Zomato’s stock closed 1.6% lower, even as the broader market rose.
