Zomato slapped with another GST Demand Notice of Rs.17.7 Crore

Zomato, an online food delivery aggregator, announced on Wednesday that it has received a GST demand order from the Assistant Commissioner of Revenue in West Bengal, along with interest and penalty amounts totalling Rs.17.7 crore. The company received a demand order on Tuesday for nonpayment of GST on delivery charges, as well as interest and penalty.

“We believe that we have a strong case on grounds and the Company will be filing an appeal against the order before the appropriate authority,” Zomato said in a regulatory filing.

The order was issued by the Assistant Commissioner of Revenue, Government of West Bengal, for the period of April 2021 to March 2022, confirming a GST demand of Rs.11,12,79,712 with interest of Rs.5,46,81,021 and penalty of Rs.1,11,27,971.

“The Company in its response to the show cause notice provided clarification on the issue along with relevant documents and judicial precedents, which appears to not have been appreciated by the authorities while passing the order,” according to Zomato.

The Company thinks it has a good case to defend the matter before the competent appeal authority and does not anticipate any financial damage, it added.

The online meal delivery business has recently received tax demand orders from several authorities.