Zomato, the popular online food delivery platform, has received a tax demand order from the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka. The demand, along with interest and penalty, amounts to a hefty ₹23.26 crores. Let’s dive into the details.
The Tax Notice
- Reason: The tax notice is related to availing excess input tax credit under the Goods and Services Tax (GST) rules.
- Response: Zomato had clarified the issue in its response to the show cause notice, providing relevant documents and judicial precedents. However, the authorities passed the order despite the company’s explanations.
Recent Tax Challenges for Zomato
- Gujarat Notice: Just a few days ago, Zomato faced a similar notice for ₹8.6 crores from the Deputy Commissioner of State Tax, Gujarat.
- Nationwide Notices: Various tax authorities across India have served notices to Zomato. These include demands related to alleged short payment of GST and other tax discrepancies.
Zomato’s Stance
- Legal Proceedings: Zomato plans to appeal against the order before the appropriate authority. The company believes it has a strong case to defend.
- Business Impact: Zomato does not expect any significant financial impact due to this tax demand.
Looking Ahead
As Zomato navigates these tax challenges, it remains committed to serving its customers and expanding its services. The legal battle ahead will test the company’s resolve and financial resilience.
