look news india
Food delivery company Zomato may face a blow worth crores of rupees. The company has received a penalty notice from the GST department in Gujarat, demanding more than Rs 8 crore. This notice has come from the Deputy Commissioner of State Tax of Gujarat.
zomato gst penalty notice
The company has informed the stock markets about the GST penalty demand notice. According to the regulatory filing of the stock exchange, Zomato has received this notice for the financial year 2018-19. GST has sent this notice to GST after auditing the returns and accounts. According to the notice, the company has availed more input tax credit while paying less GST. According to exchange filings, Gujarat GST has sent demand orders worth over Rs 4 crore. Interest And After adding the fine, the total amount is more than Rs 8.5 crore. The exact figure of demand order is Rs 4,11,68,604. After adding interest and penalty, this figure comes to Rs 8,57,77,696.
Earlier, the GST department had issued a show cause notice to Zomato. According to Zomato, the GST department responded to the show cause notice and tried to clarify the situation on every issue. Zomato says- Perhaps the GST department did not fully consider the feedback while passing the demand order. The company is going to appeal against this demand order. Zomato is confident that the decision in the appellate authority will be in its favor and it will not impose any financial burden on it. However, if the decision goes wrong, Zomato may have to pay more than Rs 8.5 crore.
