Zomato has received a substantial GST demand order from the West Bengal government. The Assistant Commissioner of Revenue issued a notice demanding ₹17.7 crore in GST, interest, and penalties, covering the period from April 2021 to March 2022. The breakdown includes a GST demand of ₹11,12,79,712, interest of ₹5,46,81,021, and a penalty of ₹1,11,27,971. This demand arises from allegations of non-payment of GST on delivery charges. Zomato, however, asserts its innocence and plans to appeal the order.
‘We believe we have a strong case and will challenge this demand before the appropriate authority,’ the company stated in a regulatory filing. Zomato emphasised that it had provided clarifications and relevant documentation in response to the show cause notice, which it feels were not properly considered by the authorities. The company believes it can effectively defend its position before the appellate authority and does not anticipate any financial repercussions.
This is not Zomato’s first encounter with tax-related issues; the company has faced similar demands from other authorities in the past. Zomato’s recent GST demand highlights the complexities of tax compliance in the food delivery industry. Disputes over the application of GST on delivery charges emphasise the need for clear regulatory guidance.
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