Zomato Gets Rs 803-Cr GST Notice

Mumbai: Food delivery and quick commerce services provider Zomato has received a tax demand notice of Rs803 crore from the Goods and Services Tax (GST) department. In a stock exchange filing, the company said this notice has been given by the Joint Commissioner of CGST and Central Excise in Thane. This tax notice includes GST demand and interest and penalty.

“This tax demand notice is for not paying GST on delivery charges. The total amount of Rs803 crore includes GST demand of Rs401.7 crore and interest/penalty of the same amount,” according to the exchange filling.

The company further said: “We believe that we have a strong case on merits, supported by the opinion of our external legal and tax advisors. The company will file an appeal against the order before the appropriate authority.”

Earlier, in January and June this year, Zomato received Rs 4.2 crore and Rs9.45 crore GST demand notices, respectively. Zomato in 2023 received a GST demand notice of Rs400 crore on delivery charges.

Delivery charges are levied by Zomato, Swiggy and other food and quick commerce companies on their services.