Online food ordering and delivery platform Zomato has received a GST (Goods and Service Tax) demand notice of 9.5 crore, it said in a filing on Sunday.

Zomato said that the demand is for the fiscal year 2019-20 following an audit of GST returns and account(Unsplash)

The notice, received on Saturday, demands a GST amount of 5.01 crore, interest of 3.93 crore, and a penalty of 50.19 lakh from the Assistant Commissioner of Commercial Taxes (Audit) Karnataka.

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“The Company has received an order for FY 2019-20 pursuant to the audit of GST returns and accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka raising demand of GST of 5,01,95,462, along with interest of 3,93,58,743/- and penalty of 50,19,546″ said Zomato.

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The company said that the demand is for the fiscal year 2019-20 following an audit of GST returns and accounts. Zomato responded to the show cause notice with detailed explanations and relevant documents, but the authority was not satisfied, it said.

Despite the notice, Zomato said it does not expect any significant financial impact and believes it has a strong case to defend before the appellate authority. The company’s shares closed at 199.80 on Friday.

In related news, Zomato announced on Thursday that it is expanding its ‘restaurant services hub’ nationwide. This hub is a one-stop solution to help restaurants scale up, offering services related to staffing and licensing essentials.

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Zomato aims to simplify the complexities of running a restaurant by assisting with finding the ideal location, securing suppliers, obtaining necessary licenses, and hiring the right staff.

Last week, Zomato’s rival Swiggy launched a new feature on its partner app to connect restaurants with staffing experts, helping them hire qualified candidates for various roles.