Zomato Hit With ₹3.5 Lakh GST Penalty

Zomato, the leading food tech company, is grappling with a fresh round of GST penalties as it faces a new tax demand of ₹3.5 lakh. This is the second GST-related notice the company has received within the week, exacerbating its ongoing fiscal challenges.

Earlier this week, Zomato was issued GST demand notices from Tamil Nadu and West Bengal, collectively amounting to approximately ₹4.59 crore. The latest penalty order, issued this week, includes a GST demand of ₹1.89 lakh, accompanied by an interest charge of ₹1.59 lakh, bringing the total to ₹3.5 lakh. This adjudication order pertains to the period from April 2019 to March 2020. Deepinder Goyal, founder of Zomato, has clarified that the GST notices dispute the company’s eligibility for input tax credit and the associated penalties.  The company is currently addressing these issues as it navigates its compliance obligations. This recent penalty follows a significant tax demand received last month, which amounted to ₹9.45 crore.

Earlier in April, Zomato faced another substantial tax demand and penalty of ₹11.8 crore, reflecting ongoing scrutiny by tax authorities. The mounting GST penalties underscore the challenges Zomato faces in managing its tax obligations amidst an evolving regulatory landscape. The company is working to resolve these disputes and ensure compliance with the applicable tax regulations. With the food tech giant now contending with multiple GST notices, there is a heightened focus on its financial and regulatory practices. The continuous flow of tax demands highlights the critical need for meticulous adherence to tax compliance and effective management of financial affairs.