Zomato gets nearly ₹6 crore relief as GST authorities drop tax demand

In relief for the food-tech major Zomato, the company updated stock exchanges that it has received a favorable ruling from the Commissioner (Appeals), Gurugram, Haryana, which set aside a ₹5.91 crore goods and services tax (GST) demand raised by the Additional Commissioner of CGST, Gurugram. The demand, covering July 2017 to March 2021, included a penalty and interest.

"We have received a favorable order on February 3, 2025 at 5:10 PM from the Commissioner (Appeals), Gurugram, Haryana dropping the earlier demand order passed by the Additional Commissioner, Central Goods and Services Tax, Gurugram for the period July 2017 to March 2021 with GST amount of INR 5,90,94,889/- (Rupees five crores ninety lakhs ninety four thousand eight hundred and eighty nine only) with interest as applicable and penalty of INR 5,90,94,889/- (Rupees five crores ninety lakhs ninety four thousand eight hundred and eighty nine only)."

In December, Zomato received a separate GST demand notice of ₹803 crore from the Joint Commissioner of CGST & Central Excise, Thane.

The ruling comes more than a week after Zomato’s Q3FY25 financial results, where its revenue surged 64.4% year-on-year to ₹5,405 crore, up from ₹3,288 crore in Q3 FY24. However, net profit declined 57.2% to ₹59 crore.

In November, Zomato raised ₹8,500 crore ($1 billion) through a Qualified Institutions Placement (QIP). A month later, it made history as the first Indian startup to enter the BSE Sensex 30, replacing JSW Steel.

At market close on Tuesday, Zomato share price settled over 2% lower at ₹233 on the NSE. The one-year return on the stock is more than 66%, but the scrip has shed nearly 12% in the last one month.