Zomato gets Rs 11.82 crore tax demand notice

NEW DELHI: Online food delivery platform Zomato has been served a tax demand and penalty order of Rs 11.82 crore in connection to GST on export services rendered to its overseas subsidiaries between July 2017 and March 2021.
The order, issued by the additional commissioner of central goods and services tax includes GST demand of Rs 5,90,94,889, along with an unspecified interest and a penalty of Rs 5,90,94,889.
The food delivery company said that it will appeal against 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 in a regulatory filing.
The company said that the services for which it has received the notice do not fulfil the conditions to qualify as export of service under GST.
"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," said Zomato.