Zomato Hit With Rs 11.81 Crore GST Demand And Penalty Order

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New Delhi: The online food delivery company, Zomato has revealed that it has received a GST demand and penalty order worth Rs 11.81 crore for the period spanning from July 2017 to March 2021.

The order includes a GST demand of Rs 5.9 crore and a penalty of Rs 5.9 crore. It was issued by the Additional Commissioner of Central Goods and Services Tax, Gurugram. The food company revealed that they received the demand order through show cause notice as the subsidiaries were provided by Zomato outside India between July 2017 to March 2021. ()

"The company has received an order for the period July 2017 to March 2021 passed by Additional Commissioner, Central Goods and Services Tax, Gurugram raising demand of GST of Rs 5,90,94,889 with applicable interest (not quantified) and penalty of Rs 5,90,94,889," the company mentioned in a regulatory filing with the stock exchange, as quoted by IANS. ()

Zomato tried to clear out the allegations with supporting documents and legal precedents. However, the authorities passed the order. The food delivery company plans to appeal against the tax demand notices.