Zomato Gets Over Rs 11 Crore Tax Demand And Penalty Order

Central Goods and Services Tax Additional Commissioner in Gurugram has passed an order asking the online food delivery platform Zomato to pay a penalty of Rs 11.82 crore. The platform has reportedly received the tax demand and penalty order to GST on export services provided to its subsidiaries located outside India from July 2017 to March 2021.

The order included the GST demand of Rs 5.9 crore, with an applicable penalty of Rs 5.0 crore. On Friday, Zomato in a regulatory filing late evening said that they believe they have a strong case on merits. The company also said that it would be filing an appeal against the order before the appropriate authority.

The company stated that the demand order has been received. “confirming demand of GST on export services provided by the company to its subsidiaries located outside India during the period July 2017 to March 2021 by upholding that such services do not fulfil the conditions for the supply to qualify as export of service under GST”.

The filing added that in its response to the show cause notice, it has clarified the allegations, along with supporting documents and judicial precedents. It further said that the clarification appears not to have been appreciated by the authorities while passing the order.

On March this year, the company had received another Rs 8.6 crore GST penalty notice from the Deputy Commissioner of State Tax, Gujarat, pertaining to fiscal 2018-19. The order had then demanded a GST payment of Rs 4,11,68,604, along with additional interest and penalty charges, amounting to total Rs 8,57,77,696, Money Control reported.