Respite For Zomato: INR 11.8 Cr GST, Penalty Demand Dropped

In a relief for foodtech major Zomato, which has been plagued by GST demand notices in various states, the Haryana GST authorities have dropped a GST demand notice of INR 5.9 Cr.

In an exchange filing, Zomato said it received a favourable order from the appeals commissioner, Gurugram, Haryana, dropping the earlier demand order passed by the additional commissioner, CGST Gurugram for July 2017 to March 2021 period with a GST amount of INR 5.9 Cr with interest as applicable and a penalty of INR 5.9 Cr.

Zomato had received the GST demand notice in April last year. 

This comes at a time when the foodtech company has received a number of such demand notices over the past year or so. In December 2024, it received a GST notice of INR 401.7 Cr, with a penalty of the same amount. 

In September last year, it received a GST order of INR 9.85 Cr from the government of West Bengal.

Zomato’s rival Swiggy has also been served a number of GST demand notices. Swiggy’s updated DRHP showed last year that the company was facing GST liabilities of about INR 326.7 Cr.

The development comes at a time when Zomato is facing increasing competition in the quick commerce segment. In November, the company raised INR 8,500 Cr via a QIP to shore up its cash reserves to expand its offerings.

Earlier this month, Zomato infused around INR 500 Cr (about $57.7 Mn) in its quick commerce arm Blinkit. 

On the financial front, Zomato’s consolidated net profit declined 57.2% to INR 59 Cr in Q3 of FY25 from INR 138 Cr in the year-ago quarter. Operating revenue surged over 64% to INR 5,405 Cr during the quarter under review from INR 3,288 Cr in the same quarter last year. 

Following the results, brokerage ICICI Securities said that the foodtech major might have lost market share in the food delivery segment in Q3.

Shares of Zomato ended Tuesday’s (February 4) trading session 1.57% lower at INR 234.50 on the BSE.