Zomato share price: Online delivering platform Zomato Ltd, on December 28, announced that it has received show cause notice (SCN) from theGoods and Services Tax (GST) office for supposed tax liability of ₹401.7 crore, in addition to interest and penalty on the delivery fee collection from its customer from the period of 29 October 2019 to 31 March 2022.
Zomato share price: Online delivering platform Zomato Ltd, on December 28, announced that it has received show cause notice (SCN) from theGoods and Services Tax (GST) office for supposed tax liability of ₹401.7 crore, in addition to interest and penalty on the delivery fee collection from its customer from the period of 29 October 2019 to 31 March 2022.
"Please note that Zomato Limited ('the Company') has received a show cause notice ('SCN') on 26 December 2023 under Section 74(1) of the Central Goods and Services Tax Act, 2017 from the Directorate General of GST Intelligence, Pune Zonal Unit. The SCN requires the Company to show cause as to why an alleged tax liability of INR 401,70,14,706/- (INR Four Hundred and One Crore, Seventy lacs, Fourteen Thousand Seven Hundred and Six Only) along with interest and penalty for the period from 29 October 2019 to 31 March 2022 should not be demanded from the Company, Zomato said in an exchange filing.
Zomato's stocks opened in red on December 28, down 1.69 per cent at ₹124.90, on BSE. Additionally, the stocks opened in red during the same period, down 1.77 per cent, at ₹124.80, on NSE.
"The amount alleged in the SCN is based on the amounts collected by the Company as delivery charges from the customers on behalf of the delivery partners during the referred period," the company further explained.
In another development, Mint reported that Zomato Live Entertainment, the events vertical of food delivery platform Zomato, is set to expand its reach by venturing into new cities and developing fresh intellectual properties (IPs).
The move aligned with the company's recent launch of a dedicated tab on the Zomato app, that helps users discover and engage with highly anticipated events across cities.
Earlier this month, Zomato Live CEO Zeenah Vilcassim, while speaking with Mint, outlined the company's growth trajectory and its aim to make a substantial double-digit contribution to Zomato's topline within three years.
As of now, Zomato Live contributes a single-digit percentage to Zomato's overall revenue. "If you look at the scale and the size of the business that we have with online ordering right now and BlinkIt, even a low double-digit is still huge as a business. That's the goal that we're working towards, and we'll release some of those numbers as they come up," she said.
Launched in 2018, Zomato Live started with a focus on the Zomaland IP, a food carnival and music festival extending to eight cities. It has garnered approximately 200,000 customers with its holistic experience of food, entertainment, and music.
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