Mumbai: Online food delivery giant Zomato Ltd has received a Goods and Services Tax (GST) notice amounting to ₹803.4 crore from the GST department in Thane, Maharashtra. The notice includes the principal tax amount along with interest and penalties. Zomato has stated its intention to appeal the notice, asserting that it has a strong case supported by legal and tax advisors.
Details of the Notice
Zomato disclosed in a regulatory filing on Thursday that the notice pertains to GST on delivery charges for the period from October 29, 2019, to March 31, 2022. The demand includes ₹401.70 crore in GST dues and an equivalent amount in penalties.
The company said, “We received an order dated December 12, 2024, issued by the Joint Commissioner, CGST and Central Excise, Thane Commissionerate, Maharashtra. This order confirms a demand of ₹803.40 crore, including applicable interest and penalties.” Zomato added that it remains confident in its legal position and will file an appeal with the appropriate authority.
Impact on Stock Performance
Following the announcement, Zomato’s shares fell by 2.36%, closing at ₹284.90 on the BSE on Thursday. Despite a 4.87% decline over the past week, the stock has delivered over 9% returns in the last month. Over the past year, Zomato has outperformed significantly, providing a robust 144% return to its investors.
The company’s 52-week high is ₹304.50, while its 52-week low stands at ₹116.
Zomato’s Response and Next Steps
Zomato emphasized its commitment to addressing the issue through appropriate legal channels. “Our external legal and tax advisors support our position, and we believe we have a strong case,” the company stated.
As Zomato navigates this tax dispute, the company’s future course of action will likely be closely monitored by investors and industry experts alike, given its significant market standing and recent strong performance on the stock exchange.
