Food delivery giant Zomato is facing a significant tax demand of Rs 803.4 crore from the GST authorities in Thane, Maharashtra. This amount includes unpaid Goods and Services Tax (GST), along with interest and penalties. Here’s a simplified breakdown of the situation:
What is the Tax Demand About?
The GST department claims that Zomato did not pay GST on delivery charges for a period spanning from October 29, 2019, to March 31, 2022. The case was reviewed and decided by the Joint Commissioner of CGST and Central Excise from the Thane Commissionerate in Maharashtra.
How is the Rs 803.4 Crore Calculated?
- GST Dues: Rs 401.7 crore
- Penalty: Rs 401.7 crore (equal to the unpaid GST amount)
- Total: Rs 803.4 crore (including interest and penalties)
Zomato’s Response
Zomato has stated that it strongly disagrees with the GST department’s decision. The company believes it has a solid legal case and is prepared to challenge the order.
"We believe that we have a strong case on merits, which is backed by opinions from our external legal and tax advisors," Zomato mentioned in its regulatory filing. The company also confirmed its plan to appeal the order before the appropriate authority.
What Happens Next?
Zomato plans to take legal action to contest the tax demand. With the support of expert legal and tax advisors, the company aims to resolve the matter through the proper judicial channels.
Stay tuned for updates as Zomato navigates this legal challenge.
