Food delivery giant Zomato disclosed on April 19 that it had received a Goods & Services Tax (GST) demand and penalty order amounting to Rs 11.81 crore for the July 2017 to March 2021 period.
The order comprised a GST demand of Rs 5.9 crore and a corresponding penalty of Rs 5.9 crore. In its regulatory filing after market hours on Friday, the company said that “the company has received an order for the period July 2017 to March 2021 passed by Additional Commissioner, Central Goods and Services Tax, Gurugram raising demand of GST of Rs 5,90,94,889 with applicable interest (not quantified) and penalty of Rs 5,90,94,889”.
This demand pertains to export services rendered by Zomato to subsidiaries outside India during the mentioned period.
In response to the show cause notice preceding the demand order, Zomato said that it had provided clarifications supported by documentation and legal precedents. However, the company expressed dissatisfaction with the authorities’ response, citing a lack of appreciation for their submissions.
Zomato intends to challenge the order by filing an appeal with the relevant appellate authority.
Source: Business Standard
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