Zomato Limited has received an order for the period April 2021 to March 2022 passed by Assistant Commissioner of Revenue, Government of West Bengal. 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 West Bengal Goods and Services Tax Act, 2017 for GST of INR 111,279,712 with interest of INR 54,681,021 and penalty of INR 11,127,971. Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority: 17 September 2024.
Details of the violation(s)/contravention(s) committed or alleged to be committed: 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. 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.
