Zomato Faces Tax Demand of Rs 23.26 Crore in Karnataka

On Sunday, Zomato, the prominent online food delivery platform, disclosed that it had been served with a tax demand, including interest and penalty, amounting to Rs 23.26 crore by the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka. 

The company has affirmed its intention to contest the order by appealing to the relevant authority.

Details of the Zomato Tax Demand:

According to a regulatory filing offered to the BSE, Zomato revealed that it had received an order for the fiscal year 2018-19 following an audit of its GST returns and accounts. 

The Assistant Commissioner of Commercial Taxes (Audit), Karnataka, has issued a demand for GST totaling Rs 11,27,23,564, coupled with applicable interest and penalty aggregating Rs 23,26,64,271.

Zomato Response:

In response to the tax demand, Zomato expressed confidence in the strength of its case and its intention to challenge the order. 

The company stated in its filing that it believes it possesses strong merits for appeal and will proceed accordingly before the appropriate authority.

Navigating Legal Proceedings

As Zomato prepares to contest the tax demand imposed by the Karnataka tax authorities, the outcome of the appeal process will have significant implications for the company’s financial standing and regulatory compliance. 

Stakeholders will closely monitor the resolution of this regulatory challenge as the app navigates through the legal proceedings in pursuit of a favorable outcome.

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