In Short:
Zomato, an online food delivery platform, has been ordered to pay ₹11.82 crore for GST on export services provided to its subsidiaries outside India. The company plans to appeal the order as it believes it has a strong case. Zomato clarified the allegations with supporting documents, but they were not appreciated by the authorities issuing the order.
Zomato Faces Tax Demand of ₹11.82 Crore for Export Services!
Hey foodies, we’ve got some spicy news for you! Zomato, your favorite online food delivery platform, has received a tax demand and penalty order of ₹11.82 crore related to GST on export services provided to its subsidiaries located outside India from July 2017 to March 2021.
What Happened?
The order was passed by the Additional Commissioner, Central Goods and Services Tax, Gurugram, raising the GST demand of 5,90,94,889, with applicable interest and penalty of ₹5,90,94,889.
Don’t worry though, Zomato is not taking this lying down! In a regulatory filing, the company stated, “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.”
What Zomato Said
Zomato 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.
According to Zomato, “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.”
Stay tuned to see how this unfolds, and in the meantime, don’t forget to order your favorite meals from Zomato!
