Zomato receives a tax demand and penalty notice of ₹11.82 Cr

Zomato, an online meal delivery business, has been hit with a tax demand and penalty order of Rs 11.82 crore for GST on export services it supplied to its non-Indian companies between July 2017 and March 2021.

The Additional Commissioner, Central Goods and Services Tax, Gurugram, issued the order, citing a GST demand of Rs 5,90,94,889 along with a penalty of Rs 5,90,94,889 and relevant interest that was not quantified.

Zomato said in a regulatory filing late on Friday night, “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.”

It stated that the request had 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 an export of service under GST.”.

“The company, in its response to the show cause notice, clarified on the allegations, along with supporting documents and judicial precedents, which appears not to have been appreciated by the authorities while passing the order,” it said.