• Notification Date: 24-04-2024
• Notification No: N/A

Zomato Receives Rs 11.8 crore GST Demand and Penalty Order for July 2017 to March 2021

Food delivery giant Zomato has received with a GST demand and penalty order totalling Rs 11.81 crore for the period of July 2017 to March 2021, the company said in a regulatory filing on April 19. 

The order is split into a GST demand of Rs 5.9 crore and a penalty of the same amount. The order was issued by the Additional Commissioner of Central Goods and Services Tax, Gurugram, for export services provided by Zomato to its foreign subsidiaries between July 2017 and March 2021. 

"Order passed under Section 74(1) of the Central Goods and Services Tax Act, 2017 read with Section 20 of Integrated Goods and Services Tax Act, 2017 for INR 5,90,94,889/- with applicable interest (not quantified) and penalty of INR 5,90,94,889/-," the company said in the filing. 

Despite Zomato's attempts to clarify the allegations with supporting documents and legal precedents, the authorities passed the order. The company has announced its intention to appeal against the order before the appropriate appellate authority. 

"The demand order has been received confirming demand of 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 export of service under GST. The Company in its response to the show cause notice had clarified on the allegations along with supporting documents and judicial precedents, which appears not to have been appreciated by the authorities while passing the order," the company said. 

Last month, Zomato said it received a GST order from the Deputy Commissioner of State Tax, Gujarat, pertaining to fiscal 2018-19. The order demands a GST payment of Rs 4,11,68,604, along with additional interest and penalty charges, amounting to Rs 8,57,77,696, the company said in an exchange filing. 

The company said the order arose following an audit of GST returns and accounts. 

"....this is to inform that the Company has received an order for FY 2018-19 pursuant to the audit of GST returns and accounts by the Deputy Commissioner of State Tax, Gujarat raising demand of GST of INR 4,11,68,604/-, along with applicable interest and penalty totalling to INR 8,57,77,696/-," said Zomato Limited in its stock exchange filing.