Zomato, a leading food delivery provider, disclosed in a regulatory filing that it faces a tax demand of Rs. 9.5 crores from the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka, covering GST, interest, and penalties for FY 2019-20. The company intends to appeal against this order, following similar challenges in recent months.
Earlier, Zomato received multiple tax demands, including Rs. 11.82 crores for export services and Rs. 23 crores for excess input tax credit in Karnataka and Gujarat. Additional demands in Delhi and Karnataka totaled Rs. 4.2 crores, focusing on GST discrepancies.
Despite legal hurdles, Zomato has initiated the shutdown of international subsidiaries in countries like the US, UK, South Africa, and Singapore. Recent closures include businesses in Poland and Vietnam. Concurrently, Zomato plans to expand its portfolio with a new restaurant services hub, offering operational support like hiring, taxation, trademarking, and FSSAI registrations to restaurants.
The company’s strategic move aims to navigate regulatory challenges while enhancing service offerings amid ongoing legal disputes.
