Zomato says GST authorities dropped Rs 5.9 crore tax demand

Food and grocery delivery firm Zomato said Tuesday that the tax authorities dropped a demand for Rs 5.9 crore in unpaid goods and services tax from the company.

The company on Monday received a favourable order from the commissioner (appeals) in Gurugram, “dropping the earlier demand order passed by the additional commissioner, Central Goods and Services Tax, Gurugram for the period July 2017 to March 2021”, Zomato said in a filing with stock exchanges.

The demand was raised in April last year. At the time, Zomato had said that it did not see any merit in the tax demand.


Along with penalty on the tax dues, the demand was Rs 11.82 crore. The tax was determined on the basis of export services provided by the company to its foreign subsidiaries.

Zomato has received several other tax notices as well from various GST authorities across the country, the biggest of which was a Rs 803 crore GST demand pertaining to allegedly unpaid tax for the period October 29, 2019 to March 31, 2022. The Gurugram-based company is appealing the Rs 803 crore demand as well.

On Tuesday, Zomato's stock closed 1.6% down at Rs 234.50 on the BSE, even as the benchmark Sensex rose 1.8%. The exchange filing came after market hours.