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Zomato gets ₹11.82 crore tax demand notice

Posted on April 20, 2024 By admin


Zomato said it will be filing an appeal against the tax demand order before the appropriate authority. File (representational image)
| Photo Credit: Reuters

Online food delivery platform Zomato has received a tax demand and penalty order of ₹11.82 crore related to GST on export services provided to its subsidiaries located outside India from July 2017 to March 2021.

The order was passed by the Additional Commissioner, Central Goods and Services Tax, Gurugram, raising the GST demand of ₹5,90,94,889, with applicable interest (not quantified) and penalty of ₹5,90,94,889.

India’s Zomato posts first-ever profit earlier than expected

“We believe that we have a strong case on merits, and the company will be filing an appeal against the order before the appropriate authority,” Zomato stated in a regulatory filing late evening on April 19.

It informed that the demand order has been received, “confirming demand of GST on export services provided by the company to its subsidiaries located outside India during the period July 2017 to March 2021 by upholding that such services do not fulfil the conditions for the supply to qualify as export of service under GST”.

Delhi court summons Zomato over ‘false practice’ of delivering food from ‘iconic restaurants’

“The company, in its response to the show cause notice, had clarified on the allegations, along with supporting documents and judicial precedents, which appears not to have been appreciated by the authorities while passing the order,” it added.



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