The online food delivery giant Zomato, on Thursday (August 29), through a regulatory filling announced that the company has received a demand notice from the Assistant Commissioner of GST and Central Excise, Nungambakkam Division, Tamil Nadu, and Assistant Commissioner of Revenue, West Bengal.
GST Trouble in Tamil Nadu
The company received the demand notice from the Assistant Commissioner of GST and Central Excise, Nungambakkam Division, Tamil Nadu for alleged excess availment of input tax credit, resulting in a demand of over Rs 81 lakh.
Through the regulatory filing, the company added that the notice also included a penalty of Rs 8.21 lakh.
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Representaive Image |
"The Company in its response to the show cause notice had clarified on the issue along with relevant factual submissions/ reconciliations and judicial precedents, which appears to not have been appreciated by the authorities while passing the order," said the company in the exchange filing.
West Bengal GST Dispute
In a separate case, the food delivery is also facing a demand from the Assistant Commissioner of Revenue, West Bengal which alleges a non-payment of GST on delivery charges, leading to a demand of nearly Rs 1.92 crore.
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Furthermore, the company has also been slapped with a hefty interest and a penalty of a total of well over Rs 3 crore.
The food delivery is also facing a demand from the Assistant Commissioner of Revenue, West Bengal | Representative Image/Canva
Similar to the Tamil Nadu case, the company contends that it has a defence, adding, "The Company believes that it has a strong case to defend the matter before the relevant appellate authority and does not expect any financial impact on the Company. This is also supported by opinions from our external legal and tax advisors."
Share performance
The shares of the company ended the day on a 251.75 per shares, down by 0.51 per cent.
