Zomato Limited announced that the company has received an order for Fiscal Year 2018-19 pursuant to the audit of GST returns and accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka raising demand of GST of INR 11,27,23,564/, along with applicable interest and penalty totaling to INR 23,26,64,271/-. The demand order has been received in respect of excess availment of input tax credit and interest, penalty thereon. The Company in its response to the show cause notice had clarified on the issue along with relevant documents and judicial precedents, which appears to not have been appreciated by the authorities while passing the order.

The Company believes that it has a strong case to defend the matter before the appellate authority and does not expect any financial impact on the Company.