Zomato Receives ₹9.5 Crore GST Notice from Karnataka: Company to Appeal Against Tax Department’s Order

The Karnataka state tax department has issued a notice to Zomato, an online food delivery platform, to recover ₹9.5 crore in Goods and Services Tax (GST), along with ₹3.93 crore in interest and ₹50,19,546 as penalty. According to Zomato’s filing, this notice pertains to the financial year 2019-20.

Upon receiving the tax notice, Zomato stated, “We believe we have a strong case based on merit and will appeal before the appropriate authority against the Karnataka tax authority’s order.”

₹23.26 Crore Tax Notice Issued in March

In March, the company received a tax demand and penalty notice totaling ₹23.26 crore from Karnataka Tax Department officials. 

At the beginning of March, the company stated that it has a strong case based on merit and will appeal before the appropriate authority against the order of the Karnataka Tax Authority.

Zomato informed the exchange about receiving the notice late on Saturday at 11:24 pm.

Zomato Reports ₹351 Crore Profit in FY24

In the financial year 2023-24, Zomato recorded a consolidated profit of ₹351 crore, with total revenue amounting to ₹12,114 crore for the entire year. In FY23, the company had incurred a loss of ₹971 crore, while its revenue was ₹7,079 crore.

During the fourth quarter of 2024, Zomato reported a profit of ₹175 crore. This marks a significant improvement compared to the same quarter of the previous year, Q4FY23, when Zomato incurred a loss of ₹188 crore. This fourth quarter consistently poses challenges for the company in terms of profitability.

Revenue Surges by 73% to ₹3,562 Crore in the Fourth Quarter

The company’s revenue has surged by 73% annually to ₹3,562 crore in the fourth quarter. The company’s revenue has increased during such times when the sector is struggling with reduced demand pressures. In the corresponding quarter of the previous year, Zomato had reported revenue of ₹2,056 crore.

Akash Shrivastav

My name is Akash Shrivastav, and I am a Blogger. I have 8 years of experience in blogging for Finance, Business, Investment, Stock Market, Cryptocurreny and more. Through my writing, I aim to provide readers with insightful and informative content.