Shares of Zomato Ltd came under pressure on Friday, falling over 2% after the food delivery aggregator disclosed a significant GST demand of ₹803.4 crore, including interest and penalty.
The demand was raised by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra, for the period between October 29, 2019, and March 31, 2022.
As of 9:15 the shares were trading 2.07% lower at Rs 279 on NSE.
The order, dated November 12, 2024, and received by Zomato on December 12, confirms a GST liability of ₹401.7 crore on delivery charges, along with a penalty of an equivalent amount, bringing the total demand to ₹803.4 crore. Additionally, the order includes applicable interest on the unpaid tax amount.
Zomato Share Price history
| Day | Open | Close | Change % |
|---|---|---|---|
|
Thu, Dec 12 2024
|
₹291.80
|
₹284.90
|
-2.36%
|
|
Wed, Dec 11 2024
|
₹290.00
|
₹291.80
|
-1.37%
|
|
Tue, Dec 10 2024
|
₹296.75
|
₹295.85
|
|
|
Mon, Dec 9 2024
|
₹304.70
|
₹295.30
|
-2.53%
|
|
Fri, Dec 6 2024
|
₹300.00
|
₹302.95
|
|
|
Thu, Dec 5 2024
|
₹288.25
|
₹299.35
|
|
|
Wed, Dec 4 2024
|
₹283.00
|
₹286.25
|
|
|
Tue, Dec 3 2024
|
₹279.70
|
₹279.85
|
-0.94%
|
In its regulatory filing, Zomato clarified that the demand relates to the alleged non-payment of GST on delivery charges collected during the said period. Despite the substantial tax demand, the company expressed confidence in its legal standing. “We believe that we have a strong case on merits, supported by opinions from our external legal and tax advisors. We will be filing an appeal against this order before the appropriate authority,” Zomato said in a statement.
The GST demand comes at a challenging time for the food delivery industry, which is navigating regulatory scrutiny and evolving tax frameworks. Analysts believe the case could set a precedent for the industry, as delivery charges have been a gray area in terms of GST applicability.