Zomato, the food delivery titan's shares were swinging in positve and negative territory after company received a tax notice of Rs 803 crore from GST department in thane.
In a regulatory filing, Zomato stated that it had received a demand order regarding the payment of GST on delivery charges, along with interest and penalties.
The stock went on to touch the day low level of Rs 278.20 per share on the NSE (National Stock Exchnage), after hitting the opening bell at Rs 279.00 per share on the Indian bourses.
Zomato's shares were trading around Rs 285.20 per share on the Indian exchanges with tiny surge of 0.11 per cent amounting to a 0.30 per cent per share on the bourses.
Details of the Rs 803 crore tax notice
According to Zomato, the order, dated November 12, for the period October 29, 2019, to March 31, 2022, was received on December 12. The Joint Commissioner of CGST & Central Excise, Thane Commission, Maharashtra, approved it, confirming the demand for Rs 401.70 crore in GST, along with any applicable interest and a Rs 401.70 crore penalty.
In a BSE filing last December 27, Zomato stated that the Directorate General of GST Intelligence, Pune Zonal Unit, had sent it a show-cause notice on December 26, 2023, in accordance with Section 74 (1) of the Central Goods and Services Tax Act, 2017.
The SCN required the company to show cause as to why an alleged tax liability of Rs 401.70 crore along with interest and penalty for the period should not be demanded from the company.
The amount alleged in the SCN was based on the amounts collected by the company as delivery charges from the customers on behalf of the delivery partners during the referred period.
Zomato Q2 FY25
In the second quarter of the fiscal year 2025 (Q2 FY25), Zomato, a food aggregator platform, saw a five-fold increase in its profit after tax (PAT) from Rs 36 crore to Rs 176 crore. PAT, however, decreased 30 per cent from Rs 253 crore in Q1 FY25.
Zomato's operating revenue increased by 69 per cent year over year (Y-o-Y) to Rs 4,799 crore from Rs 2,848 crore. In the preceding quarter, it reported revenue of Rs 4,206 crore.
