Zomato Limited Receives GST Relief

Zomato Limited has successfully obtained a positive ruling from the Commissioner (Appeals) in Gurugram, Haryana, which has overturned a prior demand for Goods and Services Tax (GST) that totalled Rs 5.91 crore. This tax demand was originally issued by the Additional Commissioner of CGST, Gurugram, covering the timeframe from July 2017 to March 2021, and included a penalty of Rs 5.91 crore along with the associated interest.

The company made this announcement in a regulatory disclosure to the National Stock Exchange (NSE). This ruling marks a substantial relief for the food-tech leader, who has been facing various regulatory and tax-related hurdles in recent years.

Recent Financial Developments

In December, Zomato faced a demand notice valuing Rs 803 crore (approximately $100 million) issued by the Joint Commissioner of CGST & Central Excise in the Thane Commissionerate of Maharashtra. This news follows Zomato’s quarterly financial results for the September to December period.

Performance Highlights

The company’s operational revenue rose by 64.4% to Rs 5,405 crore in Q3 FY25, up from Rs 3,288 crore in Q3 FY24. However, profits experienced a decline, dropping by 57.2% to Rs 59 crore during the same time frame.

Recent Fundraising and Market Position

In November, Zomato successfully raised Rs 8,500 crore ($1 billion) through a Qualified Institutions Placement (QIP) of equity shares. Following this, in December, the company made history as the first Indian startup to be included in the Bombay Stock Exchange (BSE) Sensex 30 index, taking the place of JSW Steel Limited.

As of the market close on Tuesday, shares of Zomato were trading at Rs 233.