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Zomato shares open flat after tax authorities slap notice to food delivery firms

Inc42 · 1y ago

Zomato shares open flat after tax authorities slap notice to food delivery firms

Zomato shares opened flat after the news that food delivery platforms Zomato and Swiggy have been served tax notices over non-payment. The notices amount to a cumulative goods and services tax (GST) worth around INR 1,000 Cr. The tax authorities consider the delivery charges collected by these platforms as their revenue. Both Zomato and Swiggy have been asked to pay INR 500 Cr each, which is the 18% tax levied on the total amount collected as delivery fees. This development could potentially disrupt the cash flow of these food delivery giants.

Related News

Deepinder Goyal's Zomato gets Rs 23 crore tax notice from Karnataka tax authorities

IndianStartupNews

IndianStartupNews · 1y ago

Deepinder Goyal's Zomato gets Rs 23 crore tax notice from Karnataka tax authorities

Food delivery platform Zomato has received a tax notice amounting to INR 23.26 crore ($3.11 million) for the financial year 2018-19 from Karnataka tax authorities. The notice alleges that Zomato overutilised input tax credit and demands a GST payment of INR 11.27 crore, plus interest and penalties. This follows a recent INR 8.6 crore GST penalty notice from Gujarat authorities and a show cause notice from the Directorate General of GST Intelligence. Zomato plans to challenge the order and remains confident in its position. Despite these tax challenges, Zomato reported its second consecutive profitable quarter for Q2 2023-24.

Zomato receives Rs 402 crore show cause notice over unpaid GST on delivery charges

Economic Times

Economic Times · 1y ago

Zomato receives Rs 402 crore show cause notice over unpaid GST on delivery charges

Zomato, the online food ordering platform, has received a Rs 402 crore show cause notice from GST authorities for unpaid tax on delivery charges. The notice was issued by the Directorate General of GST Intelligence (DGGI) and demands the alleged tax liability be paid for the period from October 2019 to March 2022. Zomato argues that it is not liable to pay tax on the delivery charges as they are collected on behalf of the delivery partners. The company will be filing a response to the notice.

Zomato gets GST demand order of ₹23.26 crore for FY 2018-19

Livemint

Livemint · 1y ago

Zomato gets GST demand order of ₹23.26 crore for FY 2018-19

Food delivery platform Zomato has received a demand order from tax authorities in Karnataka for a Goods and Services Tax (GST) amount of INR 23.26 crore ($3.2 million) for the financial year 2018-19. The demand order relates to the excess availment of input tax credit, interest, and penalties. Zomato intends to appeal the order and believes it has a strong case. This follows a similar tax notice received by Zomato from Gujarat tax authorities earlier this month.

Zomato gets ₹9.45 crore GST notice, plans to appeal against tax order | Mint

Livemint

Livemint · 1y ago

Zomato gets ₹9.45 crore GST notice, plans to appeal against tax order | Mint

Food delivery provider Zomato has received a Goods and Services Tax (GST) demand notice of INR 9.45 crore from tax authorities in Karnataka, India. The notice includes a GST amount of INR 5.01 crore, along with interest charges and penalties. Zomato plans to appeal the order as it believes it has a strong case. This is not the first time the company has faced a tax notice, as it received a similar demand for payment in 2021.

GST notice of ₹400 crore sent to Zomato, ₹350 crore to Swiggy

Livemint

Livemint · 1y ago

GST notice of ₹400 crore sent to Zomato, ₹350 crore to Swiggy

Zomato and Swiggy, two major food delivery aggregators in India, have reportedly received GST notices from tax authorities totaling ₹750 crore ($100 million). Zomato was issued a notice of ₹400 crore ($53 million), while Swiggy received a notice of ₹350 crore ($47 million). The Directorate General of GST Intelligence sent the notices, considering delivery as a taxable service. The tax liability spans from July 2017 to March 2023. Zomato recently reported a net profit of ₹36 crore ($4.8 million) for the quarter ended September 2023. Swiggy claims to have turned profitable in the previous quarter.

Zomato To Pay INR 9.85 Cr To West Bengal GST Authorities

Inc42 · 10m ago

Zomato To Pay INR 9.85 Cr To West Bengal GST Authorities

Zomato has received a GST notice from tax authorities in West Bengal for the period April 2020 to March 2021. The notice includes demands for GST payment, penalties, and non-payment of GST on delivery charges. Despite believing that they have a strong case on merits, Zomato has stated that they will pay the required amounts to the GST authorities. This is the second GST notice that Zomato has received in West Bengal.

Zomato’s GST Troubles: Foodtech Giant Receives Another Demand Notice

Inc42 · 11m ago

Zomato’s GST Troubles: Foodtech Giant Receives Another Demand Notice

Zomato has been hit with a GST tax demand of INR 1.89 lakh, along with interest and penalty, by the Sales Tax Officer in Delhi. The food delivery platform has stated that it will pay the applicable dues and the cost of litigation. This comes after Zomato received GST tax demand and penalty orders totaling INR 4.59 crore from authorities in Tamil Nadu and West Bengal earlier this week.

Strongly believe we're not liable to pay any tax on delivery charge, says Zomato

Money Control

Money Control · 1y ago

Strongly believe we're not liable to pay any tax on delivery charge, says Zomato

Food tech company Zomato has stated that it is not liable to pay tax on delivery charges as it believes the amount is collected on behalf of its delivery partners. The statement follows a demand notice from the Directorate General of GST Intelligence (DGGI), requesting payment of pending tax dues. DGGI argues that Zomato is liable to pay 18% GST on the delivery fee, but industry experts contend that the burden falls on gig workers, who are exempt from GST. Zomato plans to file a response to the notice and asserts that it has a strong case.

Swiggy receives Rs 7.6-crore notice from Pune profession tax department

Economic Times

Economic Times · 4m ago

Swiggy receives Rs 7.6-crore notice from Pune profession tax department

Swiggy, a food and grocery delivery firm, has been issued a Rs 7.6 crore notice by the Pune profession tax department for unpaid dues. This contributes to a total of nearly Rs 167 crore from various tax authorities across India in the past month. The notice pertains to violations in deducting profession tax in Maharashtra for fiscal 2022. Swiggy plans to appeal the notice, asserting strong arguments against the order, while also facing unpaid GST claims of over Rs 327 crore.

40 online gaming firms to get notices for tax evasion: Report

Inshorts · 1y ago

40 online gaming firms to get notices for tax evasion: Report

About 40 online gaming firms will get show-cause notices for alleged tax evasion after the Supreme Court stayed a Karnataka High Court order quashing a ₹21,000-crore GST evasion notice to Gameskraft, Moneycontrol reported. Since activities of Gameskraft and other gaming firms are identical, authorities had held back notices. Two ₹3,000-crore tax evasion notices have already been sent to two firms.

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