Zomato Faces Rs 17.7 Cr GST Demand Order, Plans to Appeal

Zomato, the online food delivery aggregator, has received a Goods and Services Tax (GST) demand order of Rs 17.7 crore from the Assistant Commissioner of Revenue, West Bengal. The demand includes GST on delivery charges, along with interest and penalties. This order pertains to the period between April 2021 and March 2022.

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 consists of Rs 11.12 crore in GST, Rs 5.46 crore in interest, and a penalty of Rs 1.11 crore.

Zomato further clarified that it had provided relevant documents and judicial precedents in response to the show cause notice, but these appear to have been disregarded by the authorities in their decision. The company emphasized its confidence in the strength of its case and does not foresee any significant financial impact as a result of the order.

This is not the first instance of Zomato receiving tax demand notices, as it has faced similar issues with various authorities in the past. However, the company is committed to addressing the current matter through the proper legal channels.