Zomato faces Rs 9.63 crore GST notice in AP

Metro India News | AMARAVATI

Food delivery giant Zomato has received a major tax notice from the Andhra Pradesh Goods and Services Tax (GST) Department, which has demanded payment of Rs 9.63 crore over alleged tax discrepancies. The notice pertains to the 2023-24 financial year, with authorities claiming that the company underpaid GST during the period. The demand has been issued to Zomato’s parent company, Eternal.

According to GST officials, discrepancies were identified in the company’s tax filings for the period between April 2023 and March 2024. Authorities alleged that the company paid less tax than what was actually due under GST regulations. Eternal disclosed in a filing to stock exchanges that it had received the order from the Office of the Deputy Commissioner of Andhra Pradesh GST on June 9, 2026.

As per the notice, the total demand of Rs 9.63 crore includes a principal tax liability of Rs 6.49 crore. In addition, the department has levied interest of Rs 2.50 crore and imposed a penalty of Rs 64.87 lakh, taking the total amount payable to Rs 9.63 crore.Responding to the development, Eternal stated that it disagrees with the findings of the tax authorities and intends to challenge the order through the appropriate legal channels. The company said it has strong grounds to contest the demand and will file an appeal before the relevant appellate authority. In its regulatory filing, Eternal noted that the GST demand relates to the period from April 2023 to March 2024 and that the company believes its position is legally sound. It expressed confidence that its arguments would withstand scrutiny during the appeal process.