Zomato's Tax Troubles: A Bitter Bite

Zomato, the food delivery giant, is facing a sour taste as it receives a hefty Goods and Services tax (GST) notice of Rs 23.26 crore from Karnataka tax authorities for the financial year 2018-19. The demand includes a GST payment of Rs 11,27,23,564, coupled with additional interest and penalty charges amounting to Rs 23,26,64,271. Despite responding to the show cause notice with clarifications and legal support, Zomato feels the authorities did not fully consider their side. Now, the company plans to appeal against the order, believing they have a strong case on merits. This tax trouble comes at a time when several startups are also facing income tax notices, adding to the financial woes in the startup ecosystem. The road ahead for Zomato seems rocky, but they are gearing up to fight back against the tax storm.