Zomato Ltd disclosed on December 28 that it has been served a show cause notice (SCN) by the Goods and Services Tax (GST) office, citing a potential tax liability of ₹401.7 crore. The notice also includes provisions for interest and penalties related to the collection of delivery fees from customers spanning October 29, 2019, to March 31, 2022.
In an official exchange filing, Zomato stated, “Please note that Zomato Limited has received a show cause notice on December 26, 2023, under Section 74(1) of the Central Goods and Services Tax Act, 2017, from the Directorate General of GST Intelligence, Pune Zonal Unit.”
The SCN demands the company’s response to the alleged tax liability of ₹401,70,14,706 along with interest and penalty for the specified period.
As of 1:48 pm, Zomato shares demonstrated resilience, trading 3.70% higher at ₹122.35 despite the regulatory challenges.
