Zomato to Pay Rs.9.85 Crore to GST Authorities of West Bengal

Already dealing with a number of goods and services tax (GST) notices, foodtech giant Zomato has agreed to settle a lawsuit with West Bengal GST officials by paying Rs.9.85 crore.

In an exchange filing, Zomato stated that on August 12, it received an adjudication order from the Assistant Commissioner of Revenue, Government of West Bengal for the April 2020 to March 2021 period for a GST demand of Rs.5.59 crore.

In addition to the GST, Zomato was ordered to pay Rs.3.69 crore in interest and a Rs.55.95 lakh penalty for failing to pay GST on delivery charges.

Zomato stated that after obtaining the show cause notice from the authorities, it clarified the problem, providing relevant documents and judicial precedents. However, it appears that the authorities did not appreciate it when they issued the order.

Zomato stated that it feels it has a strong case on merits. However, considering the size of the transaction and the cost of litigation, it will pay the GST authorities the appropriate amounts.

“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,” a spokesperson said.

It is worth noting that this is the second notice of GST that Zomato has received in West Bengal.