Company giving 250% return in one year gets notice of GST demand, know what will be the impact on shares
Zomato has once again received a tax demand notice. This time the company has received a notice from the Additional Commissioner of Central Goods and Services Tax, Gurugram. Zomato has been asked to pay Rs 11.8 crore including interest and penalty. Zomato said that it would further appeal against this decision. Zomato shares have given returns of about 250 per cent in the last year.
Food delivery platform Zomato has once again received a notice of tax demand. This time the company has received a notice from the Additional Commissioner, Central Goods and Services Tax, Gurugram. Zomato has been asked to pay Rs 11.8 crore including interest and penalty.
Deepinder Goyal-owned Zomato said in its regulatory filing that it has been demanded for GST from July 2017 to March 2021. During this period, Zomato provided export services to its foreign subsidiaries, on which GST was claimed. But, the notice said that these services do not meet the conditions of the exemption.
Zomato said that in response to the notice it presented its case through documents and judicial precedents. But, the officials did not consider his clarification while issuing the notice. Zomato said that its stand in this case is strong under the law and it will further appeal against this decision.
Zomato had previously gotten tax demand letters from states like Gujarat and Karnataka. The company declared that its position was firm and that it would file additional appeals in each of those cases as well.
Zomato's stock finished Friday, April 19, 1.78 per cent higher at Rs 188.50. In the last six months, the company has returned 73%, and in a year, it has returned 248%. The company's shares are benefiting from the strong performance of its instant grocery delivery platform, BlinkIt.
