Zomato Receives GST Demand Order and Penalty of Rs 17.7 Crore from West Bengal Authorities

Zomato, an online food delivery service, has been issued a GST demand order by the Assistant Commissioner of Revenue in West Bengal. The order, received on Tuesday, includes interest and penalties, totalling Rs 17.7 crore. This demand is related to unpaid GST on delivery charges for the period from April 2021 to March 2022.

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The company stated in a regulatory filing that it intends to appeal the order. "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," Zomato said. The demand comprises Rs 11,12,79,712 in GST, Rs 5,46,81,021 in interest, and a penalty of Rs 1,11,27,971.

GST Demand Details

Zomato clarified that it had responded to the show cause notice with relevant documents and judicial precedents. However, these submissions seem not to have been considered by the authorities when issuing the order. The company remains confident about its position and plans to defend itself before the appellate authority.

The company expressed confidence that this issue will not have any financial impact. "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," it added.

Previous Tax Demands

This is not the first time Zomato has faced tax demands from authorities. The company has been receiving similar orders from various tax departments recently. Despite these challenges, Zomato continues to maintain its stance on these matters.

The ongoing situation highlights the complexities involved in tax compliance for online platforms like Zomato. As they navigate these challenges, companies must ensure adherence to tax regulations while defending their positions when disputes arise.