Zomato Receives Notice of Tax Demand of Rs. 11.82 Crore; Company Will File Appeal

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.” “Confirming demand for 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 notice stated that it has received the demand order.

“The company provided clarification on the allegations, supporting documentation, and legal precedents in its response to the show cause notice, which seems to have been overlooked by the authorities when issuing the order,” the statement said.

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