Zomato stock price: On December 28, online delivering platform Zomato Ltd announced that it had received a show cause notice (SCN) from the Goods and Services Tax (GST) office for an alleged tax liability of 401.7 crore, as well as interest and penalty on delivery fee collections from its customers from 29 October 2019 to 31 March 2022.
"Please be advised that Zomato Limited ('the Company') got a show cause notice ('SCN') on 26 December 2023 from the Directorate General of GST Intelligence, Pune Zonal Unit under Section 74(1) of the Central Goods and Services Tax Act, 2017. The SCN requires the Company to show cause why an alleged tax liability of INR 401,70,14,706/- (INR Four Hundred and One Crore, Seventy Lacs, Fourteen Thousand Seven Hundred and Six Only) should not be demanded from the Company for the period from 29 October 2019 to 31 March 2022, Zomato said in an exchange filing.
Zomato's shares opened in the red on the BSE on December 28, down 1.69 percent at 124.90. Moreover, the stocks opened in the negative over the same period, down 1.77 percent at 124.80 on the NSE.
"The amount alleged in the SCN is based on the amounts collected by the Company as delivery charges from the customers on behalf of the delivery partners during the referred period," the business went on to say.
In other news, Mint reported that Zomato Live Entertainment, the events division of meal delivery platform Zomato, is planning to expand its reach by expanding into other locations and producing new intellectual properties (IPs). The move coincided with the company's recent launch of a dedicated page on the Zomato app that allows users to discover and participate with highly anticipated events in cities around the country.
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While speaking with Mint earlier this month, Zomato Live CEO Zeenah Vilcassim detailed the company's growth trajectory and its goal of making a significant double-digit contribution to Zomato's topline within three years.
Zomato Live now produces a single-digit percentage of Zomato's overall revenue. "When you look at the scale and size of the business that we have right now with online ordering and BlinkIt, even a low double-digit is still a huge business." That's the goal we're aiming for, and we'll reveal some of the numbers when they become available," she said.
Zomato Live debuted in 2018 with an emphasis on the Zomaland IP, a food festival and music festival that spans eight locations. With its all-encompassing experience of cuisine, entertainment, and music, it has attracted nearly 200,000 consumers.
