ETtech Explainer: The Rs 402 crore GST notice that sent Zomato’s shares tumbling

On Thursday, shares of food delivery platform Zomato bucked the trend and opened 1.7% lower despite upbeat broader markets rally to set new highs. What triggered the fall was a show cause notice for Rs 402 crore in unpaid goods and services tax (GST) issued to the company by tax authorities.

What’s the latest development?

Late Wednesday, Zomato filed a notice with stock exchanges about being served a notice by the Directorate General of GST Intelligence (DGGI) on December 26, asking the Gurugram-based company to show cause on why a tax demand should not be raised on delivery charges it collects from its users.