Zomato Limited received 2 orders for the financial year April 2019 to March 2020 from: Assistant Commissioner of GST and Central Excise, Nungambakkam Division, Tamil Nadu, alleging excess availment of input tax credit; and Assistant Commissioner of Revenue, Government of West Bengal, alleging non-payment of GST on delivery charges along with applicable interest and penalty. Nature and details of the action(s) taken, or order(s) passed: Adjudication Order passed under Section 73 of the Central Goods and Services Tax Act, 2017 and Tamil Nadu Goods and Services Tax Act, 2017 for GST of INR 8,116,518/- (Rupees Eighty-One Lacs Sixteen Thousand Five Hundred and Eighteen) with applicable interest (not quantified) and penalty of INR 821,290/- (Rupees Eight Lacs Twenty-One Thousand Two Hundred and Ninety). Adjudication Order passed under Section 73 of the Central Goods and Services Tax Act, 2017 and West Bengal Goods and Services Tax Act, 2017 for GST of INR 19,243,792/- (Rupees One Crore Ninety Two Lacs Forty Three Thousand Seven Hundred and Ninety Two) with interest of INR 15,812,070/- (Rupees One Crore Fifty Eight Lacs Twelve Thousand and Seventy) and penalty of INR 1,924,379/- (Rupees Nineteen Lacs Twenty Four Thousand Three Hundred and Seventy Nine).
Date of receipt of direction or order, including any ad- interim or interim orders, or any other communication from the authority: 28 August 2024. The demand order has been received in respect of excess availment of input tax credit and interest, penalty thereon. 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.
The demand order has been received in respect of non- payment of GST on delivery charges and interest, penalty thereon. The Company in its response to the show cause notice had clarified on the issue along with relevant documents and judicial precedents, which appears to not have been appreciated by the authorities while passing the order. Expected financial implications, if any, due to compensation, penalty etc.: Given that the officer has not appreciated the data submitted, 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.
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 external legal and tax advisors.
