Zomato receives fresh GST demand notice of Rs 4.2 cr

New Delhi : Online food delivery platform Zomato has said that it received notices from the tax authorities in Delhi and Karnataka over alleged short payment of goods and services tax (GST) in 2018 amounting to Rs 4.2 crore.

The company received three orders from "Sales Tax Officer, Ward 300, Delhi and Deputy Commissioner, DGSTO-4, Bengaluru, Karnataka alleging short payment of GST along with applicable interest and penalty under Section 73 of the Central Goods and Services Tax Act, 2017 (‘CGST Act, 2017’), Delhi Goods and Services Tax Act, 2017 (‘DGST Act, 2017’) and Karnataka Goods and Services Tax Act, 2017 (‘KGST Act, 2017’)," Zomato mentioned in a filing with stock exchanges.

Zomato also said that it will appeal against the tax demand notices. "The authorities in Delhi and Karnataka seem to have issued the above orders dated December 30 and 31, 2023 without giving due consideration to our response submitted earlier," the company stated.

"We believe that we have a strong case on merit and the company will be filing appeals against the orders before the appropriate appellate authorities," it added.

This comes after Zomato received Rs 400 crore show-cause notice from the goods and services tax authorities over unpaid dues collected as "delivery charges".

The Directorate General of GST Intelligence (DGGI) last month issued a demand notice to Zomato and its rival Swiggy, asking them to pay pending dues of over Rs 400 crore and Rs 350 crore, respectively. The show-cause notice to Zomato is for the period between October 29, 2019, and March 31, 2022.