The Andhra Pradesh GST department has issued a major tax demand notice to the prominent online food delivery platform Zomato over allegations of tax evasion. The state authorities have directed the company to clear liabilities amounting to ₹9.63 crore, citing discrepancies and short payments in its Goods and Services Tax (GST) returns. The penalties specifically pertain to the financial year 2023–24, during which the department observed that the company had deposited significantly lower taxes than its actual financial volume mandated.
According to official filings, the discrepancies were flagged for the operational period spanning from April 2023 to March 2024. Zomato’s parent entity, Eternal, formally disclosed the development in its recent stock exchange filing, confirming that it received the formal adjudication order from the Office of the Deputy Commissioner of AP GST on June 9, 2026. Out of the total ₹9.63 crore demanded by the state government, the principal tax component stands at ₹6.49 crore, while the remaining balance comprises ₹2.50 crore in accrued interest and a penalty of ₹64.87 lakh.
In response to the state government’s penal order, the food tech giant announced its plan to legally challenge the demand, expressing confidence in its compliance framework. “The company received an order on June 9, 2026, confirming a GST demand for the period April 2023 to March 2024; however, we believe we have a strong case on merits,” Eternal stated in its official regulatory filing. The parent organization further assured its shareholders and consumers that the ongoing legal tax dispute would not cause any adverse impact on the company’s financial health or its routine pan-India delivery operations.
