Food delivery giant Zomato has received a GST demand and penalty order of Rs 11.81 crore, for the period from July 2017 to March 2021, the company announced on April 19.
The order consists of Rs 5.9 crore GST demand and a penalty of Rs 5.9 crore. “The company has received an order for the period July 2017 to March 2021 passed by Additional Commissioner, Central Goods and Services Tax, Gurugram raising demand of GST of INR 5,90,94,889/- with applicable interest (not quantified) and penalty of INR 5,90,94,889/-,” the company said in the regulatory filing after market hours on Friday.
Zomato said it received the demand order via a show cause notice for export services the company had provided to subsidiaries outside India between July 2017 and March 2021.
The company, in its response to the show cause notice, said it had clarified the allegations with supporting documents and judicial precedents, “which appears not to have been appreciated by the authorities while passing the order,” the company said in the filing.
Zomato said it would file an appeal against the order before the relevant appellate authority.
Zomato said it would file an appeal against the order before the relevant appellate authority.