Zomato gets GST Demand and Penalty Order of Rs.11.8 crore for the period of July 2017 to March 2021:

Zomato gets GST Demand and Penalty Order of Rs.11.8 crore for the period of July 2017 to March 2021 The food delivery giant, Zomato got a GST demand and penalty order totalling Rs 11.81 crore for the period July 2017 to March 2021, the business announced in a regulatory filing on April 19. The order consists of a Rs.5.9 crore GST demand and a corresponding penalty. The Additional Commissioner of Central Goods and Services Tax, Gurugram, issued the order for export services given by Zomato to its overseas businesses from July 2017 to March 2021. "Order passed under Section 74(1) of the Central Goods and Services Tax Act (CGST) 2017 read with Section 20 of Integrated Goods and Services Tax Act (SGST) 2017 for INR 5,90,94,889 with applicable interest (not quantified) and penalty of INR 5,90,94,889," the company stated in its filing. Despite Zomato's efforts to clarify the claims with supporting documentation and legal precedents, the authorities issued the order. The business has indicated its intention to appeal the order to the competent appellate authority. "The demand order has been received, confirming the demand for GST on export services provided by the Company to its subsidiaries located outside India between July 2017 and March 2021, and upholding that such services do not meet the conditions for the supply to qualify as an export of service under GST. The Company addressed the claims in its response to the show cause notice, together with supporting papers and judicial precedents, which did not appear to be comprehended by the authorities when the order was issued," the company stated. Zomato claimed last month that it received a GST order from Gujarat's Deputy Commissioner of State Tax for the financial year 2018-19. The order requires a GST payment of Rs.4,11,68,604, as well as additional interest and penalty charges totalling Rs 8,57,77,696, the business stated in an exchange filing. The company stated that the order resulted from an audit of GST returns and accounts.