The Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra, has sent Zomato a demand notices worth Rs. 803 crore (nearly $100 million).

A demand order passed by the Joint Commissioner of CGST and Central Excise, Thane, for the period from 29 October 2019 to 31 March 2022 was received by the company on Thursday.

The demand order has been received regarding the non-payment of GST on delivery charges, including interest and penalties. There are Rs. 401.7 crore as GST demand and interest/penalties in the total amount of Rs. 803 crores.

Our external legal and tax advisors support our strong case on merits. The company will appeal the order to the appropriate authority, according to the filing.

The market capitalization of Zomato stood at Rs. 2,75,614 crore (approximately $32.8 billion) as of December 12th. The company’s shares might be affected tomorrow by the demand notice.

The company recently raised over $1 billion through a qualified institutions placement of equity shares.

A remarkable 68.5% quarter-on-quarter growth in operating revenue was achieved by Zomato for the fiscal year ending in, reaching Rs. 4,799 crores in the second quarter of FY25 from Rs. 2,848 crore in the second quarter of FY24. Net profit increased by 4.8x to Rs. 176 crore in the September quarter.

The arch-rival posted a revenue of Rs. 3,601 crore and a net loss of Rs. 625 crore in the second quarter of the ongoing fiscal year. The recently-listed firm closed at $507.6 per share, with a total market value of $113,623 crore (roughly $13.5 billion)