Zomato Challenges GST Demand of Rs 17.7 Crore from West Bengal

Zomato received a GST demand order of Rs 17.7 crore from the Assistant Commissioner of Revenue, West Bengal, with interest and penalty. The order is for non-payment of GST on delivery charges from April 2021 to March 2022. Zomato plans to appeal, citing a strong case on merits.

Online food delivery aggregator Zomato announced on Wednesday that it has been slapped with a GST demand order amounting to Rs 17.7 crore. This sum includes interest and penalties, as issued by the Assistant Commissioner of Revenue in West Bengal.

The demand pertains to the non-payment of GST on delivery charges for the period between April 2021 and March 2022. Zomato received the order on Tuesday and has stated that it believes the order lacks merit.

In response to a show-cause notice, Zomato had provided relevant documents and judicial precedents, which it claims were overlooked by authorities. The company intends to appeal the order, asserting a strong case and expecting no financial impact from the demand.

The online food delivery giant has faced similar tax demand notices from multiple authorities recently.

(With inputs from agencies.)