Zomato Gets Rs 401 Crore Notice Over Unpaid Taxes, Their Response
NDTV
The tax authority has told Zomato to pay penalties and interest from October 2019 to March 2022 over its inability to pay tax on delivery charges which it collected from customers on behalf of the delivery partners.
Food delivery giant Zomato has received a Good and Services Tax (GST) notice over a tax liability of Rs 401.7 crore. The Directorate General of GST Intelligence (DGGI) had sent tax notices to Zomato and Swiggy for not paying GST on delivery charges and said the delivery charges fall under the services category and the firms are liable to pay 18 per cent GST.
Zomato responded to a show cause notice issued by DGGI and said it is not liable to pay any tax and said, "The delivery charge is collected by the company on behalf of the delivery partners. Further, in view of the contractual terms and conditions mutually agreed upon, the delivery partners have provided the delivery services to the customers and not the company."
"This is also supported by opinions from our external legal and tax advisors. The Company will be filing an appropriate response to the show cause notice," Zomato said in a disclosure statement.
