Zomato faces tax demand notice worth Rs 11.82 crore

New Delhi: Online food delivery platform Zomato has been issued a tax demand and penalty order of Rs 11.82 crore. The notice is in relation to the Goods and Services Tax (GST) on export services provided by Zomato to its subsidiaries located outside India from July 2017 to March 2021.

The order was passed by the Additional Commissioner, Central Goods and Services Tax, Gurugram, raising the GST demand of Rs 5,90,94,889, with applicable interest (not quantified) and penalty of Rs 5,90,94,889.

"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 stated in a regulatory filing late evening on Friday.

It informed that 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," it added.

(With PTI Inputs)