Zomato Slips 2% Over 803 Cr GST Notice

Shares of food aggregator platform Zomato fell by about 2.6% clocking day’s low of ₹277.90 on the BSE after the company received a GST notice of ₹803 crore. The company is set to file an appeal against the order.

The company filing said, “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.”

The notice includes a GST demand of ₹410.70 crore along with interest and penalty of ₹410.70 crore.

Previously, Zomato CEO Deepinder Goyal and shareholder Rajesh Sawhney indulged in a verbal battle on X over the company's environmental claims which states "100% Green Deliveries."

In a post on X, entrepreneur and investor Rajesh Sawhney criticised Zomato’s sustainability practices by highlighting an incident where he saw a Zomato delivery person promoting the company's green initiative through a petrol-powered bike.

He stated, “100% Green Deliveries” on “Petrol Bikes” delivering “teekhe meethe golpaggpe” ? Companies like Zomato should not make false claims just to sound cool. There is nothing “Green” in this pic.”

In response, Goyal defended Zomato’s sustainability practices by clarifying that company offsets more carbon than it generates from delivery fleets.

He replied, “We offset more than 100% of the carbon our delivery fleet generates. We have been doing this for the last few years, while taking the required steps to reach our promise of Net Zero by 2030.”

Zomato reported a net profit of ₹176 crore in the second quarter, clocking a growth of 389% on a yearly basis. Revenue from operations surged 68% year-on-year (YoY) to ₹4,799 crore in Q2.