Zomato Ltd shares are in the spotlight on Monday morning after the online meal delivery platform announced a GST demand of Rs 9.46 crore for FY20. The demand order has been obtained for excessive use of the input tax credit, as well as interest and penalties.
Zomato highlighted the matter in its response to the show cause notice, including relevant papers and legal precedents, which the authorities appear to have overlooked when issuing the order, the business told stock markets.
Zomato stated that it has a strong case to defend the matter before the competent appellate court and does not anticipate any financial impact on the company.
Zomato shares have risen 14.42 percent in the previous month and 60.92 percent in 2024. The stock reached a 52-week high of Rs 207.30 on May 13. "Pursuant to Regulation 30 of the Listing Regulations, this is to inform that the Company has received an order for FY2019-20 pursuant to the audit of GST returns and accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka raising demand of GST of INR 5,01,95,462/- (Rupees Five Crores One Lac Ninety Five Thousand Four Hundred and Sixty-Two Only), along with interest of INR 3,93,58,743/- (Rupees Three Crores Ninety Three Lacs Fifty Eight Thousand Seven.
