Zomato shares recover from day's low; trade in green now; here is what company said on tax notice

The food delivery aggregator on Thursday said the GST department in Thane has imposed a tax demand of ₹803.4 crore, including interest and penalty.

The demand order has been received in respect of non-payment of GST on delivery charges with interest and penalty thereon, Zomato said in a regulatory filing. The company said it will file an appeal before the appropriate authority as it believes it has a strong case.

"... Company has received an order on 12 December 2024 ... for the period 29 October 2019 to 31 March 2022 passed by Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra, confirming demand of GST of Rs 401,70,14,706 with interest as applicable and penalty of Rs 401,70,14,706," Zomato stated.

"We believe that we have a strong case on merits, which is backed by opinions from our external legal and tax advisors. The company will be filing an appeal against the order before the appropriate authority," it added.

Zomato CEO Deepinder Goyal had earlier shared that the proposed fundraise is meant to strengthen its balance sheet.

The company opened its qualified institutional placement (QIP) issue on November 25.

In a regulatory filing, the company informed that the Fund Raising Committee of its Board approved the allotment of 33,64,73,755 (33.65 crore) shares to eligible qualified institutional buyers at an issue price of ₹252.62 apiece, aggregating to ₹8,500 crore.

These shares were allotted to investors at a 5% discount from the floor price, which was fixed at ₹265.91 per share.

Meanwhile, Asia Index Private Ltd, a subsidiary of BSE, recently announced that Zomato will enter the coveted SENSEX index on December 23 this year. 

Zomato's inclusion in the 30-stock index marks a significant milestone for the company, which has seen an impressive rally over the past year.

Shares of the company have rallied 129% YTD and 138% in the past 12 months.