Zomato Faces GST Demand Order of ₹17.7 Crore from West Bengal Authorities
Online food delivery aggregator Zomato has recently announced that it has received a GST demand order amounting to ₹17.7 crore, including interest and penalty, from the Assistant Commissioner of Revenue in West Bengal. The notification, which was received on Tuesday, pertains to the non-payment of GST on delivery charges along with associated interest and penalties.
In a regulatory filing, Zomato stated, “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.” The demand order covers the period from April 2021 to March 2022 and confirms a GST demand of ₹11,12,79,712, along with an interest charge of ₹5,46,81,021 and a penalty of ₹1,11,27,971.
Zomato’s response to the initial show cause notice included clarifications on the matter supported by relevant documents and judicial precedents. However, the company claims that these factors were not sufficiently considered by the authorities during the order issuance.
In its statement, Zomato expressed confidence in its ability to contest the order before the relevant appellate authority, stating that it does not expect any financial repercussions for the company. This situation arises amidst a backdrop of Zomato receiving multiple tax demand orders from various authorities in recent times, highlighting ongoing regulatory scrutiny in the online food delivery sector.
As the company prepares to challenge the demand, it underscores its belief in the robustness of its case and commitment to navigating the complexities of the regulatory landscape effectively.
