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Tuesday, December 24, 2024
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Why Did Zomato Receive a GST Tax Demand Notice?

Online food delivery platform Zomato has received GST tax demand orders of over ₹ 4.59 crore, including applicable interest and penalty, from Tamil Nadu and West Bengal authorities.

The company said it plans to appeal against the demand orders passed by the Assistant Commissioner of GST and Central Excise, Nungambakkam Division, Tamil Nadu and Assistant Commissioner of Revenue, Government of West Bengal.

The Tamil Nadu tax authority passed an Adjudication Order under Section 73 of the Central Goods and Services Tax Act, 2017, and Tamil Nadu Goods and Services Tax Act, 2017, for GST of ₹ 81,16,518, with applicable interest (not quantified) and penalty of ₹ 8,21,290.

The West Bengal authorities issued an adjudication decision under Section 73 of the Central Goods and Services Tax Act, 2017 and West Bengal Goods and Services Tax Act, 2017 for GST of ₹ 1,92,43,792 with interest of ₹ 1,58,12,070 and a penalty of ₹ 19,24,379.

In a regulatory filing, Zomato stated that it indicated in its response, along with relevant documents and legal precedents, “which appears to have not been appreciated by the authorities while passing the order”.

“The Company thinks it has a good case to defend the dispute before the competent appellate court and does not expect

“The Company believes that it has a strong case to defend the matter before the relevant appellate authority and does not expect any financial impact on the Company,” Zomato stated.

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