NEW DELHI: Food deliver giant Zomato- said on Thursday it has received a tax notice of nearly Rs 803 crore from the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra. The demand order has been received in respect of non-payment of GST on delivery charges with interest and penalty thereon.
“…in continuation to the disclosure filed on December 27, 2023, this is to inform that the company has received an order on December 12, 2024 which is dated November 12, 2024 for the period October 29, 2019 to March 31, 2022, passed by Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra confirming demand of GST of Rs 401,70,14,706 with interest as applicable and penalty of Rs 401,70,14,706,” said Zomato in a regulatory filing.
Zomato said that they believe that have a strong case on merits which is backed by opinions from our external legal and tax advisors. The Company will be filing an appeal against the order before the appropriate authority.
In December last year, Zomato had received a GST notice of Rs 401.7 crore. The Directorate General of GST Intelligence (DGCI) had sent tax notices to Zomato and Swiggy for not paying GST on delivery charges and said the delivery charges decline under the services category and the firms are liable to pay 18% GST.
Zomato had then said it is not liable to pay any taxes.
It had said, “The delivery charge is collected by the company on behalf of the delivery partners. Further, in view of the contractual terms and conditions mutually agreed upon, the delivery partners have provided the delivery services to the customers and not the company.”