Zomato on Sunday said that it has received an order for FY 2018-19 pursuant to the audit of GST returns and accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka. The order has raised the demand of GST of Rs 23.26 crore for FY19.
“This is to inform that the company has received an order for FY 2018-19 pursuant to the audit of GST returns and accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka raising demand of GST of Rs 11,27,23,564, along with applicable interest and penalty totaling to Rs 23,26,64,271,” the company said in a regulatory filing.
The demand order has been received in respect of excess availment of input tax credit and interest, penalty thereon. In response to the notice, Zomato said that it had clarified on the issue along with relevant documents and judicial precedents, “which appears to not have been appreciated by the authorities while passing the order”.
“We believe that we have a strong case on merits and the company will be filing an appeal against the order before the appropriate authority,” Zomato said in the exchange filing, while maintaining that this is not expected to have any financial impact on the company.