Zomato gets Rs 11.82 cr tax demand notice

New Delhi: Online food delivery platform Zomato has received a tax demand and penalty order of Rs 11.82 crore related to Goods and Services Tax (GST) on export services provided to its subsidiaries located outside India from July 2017 to March 2021.

The order was passed by the Additional Commissioner, Central Goods and Services Tax, Gurugram, raising the GST demand of Rs 5,90,94,889, with applicable interest (not quantified) and penalty of

Rs 5,90,94,889.

“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,” Zomato stated in a regulatory filing late evening on Friday.

It 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”. PTI