Zomato gets GST Penalty Notice of Rs.8.6 Crore from Gujarat’s Deputy Commissioner of State Tax

Zomato Limited has stated that it received a GST order from Gujarat’s Deputy Commissioner of State Tax for the financial year 2018-19.

According to Zomato’s filing, the order requires a GST payment of Rs 4,11,68,604, as well as additional interest and penalty charges totalling Rs 8,57,77,696.

The company stated that the order resulted from an audit of GST returns and accounting.

“….this is to inform that the Company has received an order for FY 2018-19 pursuant to the audit of GST returns and accounts by the Deputy Commissioner of State Tax, Gujarat raising demand of GST of INR 4,11,68,604, along with applicable interest and penalty totalling to INR 8,57,77,696,” stated Zomato Limited in its stock exchange filing.

The action taken, as disclosed by Zomato, is in response to an Adjudication Order issued under Section 73 of the CGST Act, 2017 and the GGST Act, 2017. This order imposes a GST demand of Rs.4,11,68,604, together with interest of Rs.4,04,42,232 and a penalty of Rs 41,66,860, totalling the previously mentioned amount.

The order cites irregularities involving suspected excess input tax credit and GST short payment discovered during audit processes. Zomato has expressed confidence in its position and intends to contest the order before the appropriate authorities.