Zomato Faces ₹803 Crore GST Demand Over Delivery Charges, Plans to Appeal
Zomato faces a ₹803 crore GST demand for delivery charges. The company plans to appeal, citing a strong legal case. Learn more about the tax dispute.
New Delhi: Food delivery giant Zomato has been hit with a Goods and Services Tax (GST) demand of ₹803.4 crore, including interest and penalties, by the GST department in Thane, Maharashtra. The demand relates to alleged non-payment of GST on delivery charges for the period between October 29, 2019, and March 31, 2022.
The demand order, issued by the Joint Commissioner of CGST & Central Excise, claims Zomato owes ₹401.7 crore in tax and an equal amount as penalty, along with applicable interest, according to the company's regulatory filing on December 12.
Zomato, however, has announced its intention to contest the order, asserting that it has a robust case supported by advice from its external legal and tax experts.
"We believe we have a strong case on merits and will be filing an appeal against the order before the appropriate authority," Zomato said in its statement.
The company emphasized its commitment to compliance and stated that the issue revolves around the classification and applicability of GST on delivery charges.
This development comes as food delivery platforms face increasing scrutiny from tax authorities, highlighting the complexities of indirect taxation in the rapidly evolving e-commerce sector.
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