Food delivery company Zomato may face a blow of crores of rupees. The company has received a penalty notice from the GST department in Gujarat, in which a demand of more than Rs 8 crore has been made. The notice has come from the Deputy Commissioner of State Tax of Gujarat.
This is the reason for receiving GST penalty notice
The company has informed the stock markets about the GST penalty demand notice. According to the regulatory filing made with the stock exchange, Zomato has received this notice for the financial year 2018-19. The GST department has sent this notice to GST after auditing the returns and accounts. According to the notice, the company has availed more of the input tax credit, while paying less GST.
The figure is this after adding interest and penalty
According to the exchange filing, Gujarat GST has sent demand orders worth more than Rs 4 crore. After adding interest and penalty, the total amount becomes more than Rs 8.5 crore. The exact figure of demand order is Rs 4,11,68,604. After adding interest and penalty, the figure reaches Rs 8,57,77,696.
The company had received a show cause notice
Earlier, the GST department issued a show cause notice to Zomato. did. According to Zomato, it had replied to the show cause notice of the GST department and had tried to clarify the situation on every issue. Zomato says – Probably the GST department did not fully consider the reply while passing the demand order.
Zomato is confident about this. Is going to appeal against. Zomato is confident that the decision in the appellate authority will be in its favor and it will not face any financial burden due to this. However, if the decision is unfavorable, Zomato may have to pay more than Rs 8.5 crore.
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