Zomato, India’s top food delivery and quick commerce platform, has been slapped with a tax bill of $94.5 million.
The Indian tax authority has ordered the $32 billion firm to pay 401.7 crore in allegedly unpaid gross goods and services tax for the period between October 29, 2019, and March 31, 2022. The order also imposes an equivalent amount in penalties, along with applicable interest.
The tax demand specifically relates to non-payment of GST on delivery charges, a matter that may have a broader implications for India’s fast-growing growing food delivery sector.
Zomato said in a stock exchange filing Thursday evening that it “has a strong case on merits which is backed by opinions from external legal and tax advisors” and plans to appeal the order before the appropriate authority.
The tax liability represents a substantial financial exposure for the Gurugram-headquartered company, exceeding half of its profits for the fiscal year ending March 2024.
