CIO Insider

CIOInsider India Magazine

Separator

Zomato Receives a Rs.9.5 Crore GST Demand Notice

CIO Insider Team | Monday, 1 July, 2024
Separator

Zomato, an online food ordering and delivery platform, announced in a filing that it has received a Rs.9.5 crore GST (Goods and Service Tax) demand notice.

According to the company's statement on the public courses, it would be submitting an appeal against the demand.

The most recent order, for FY20, was issued in relation to the company's excessive use of input tax credits.

Similar demands have been made to Zomato before; the most recent one was made on April 20 for Rs 11.82 crore for export services the company offers to its overseas subsidiaries.

Additionally, on April 1, Zomato got a tax demand from the Karnataka commercial taxes authorities for the use of excess input tax credits of Rs 23 crore.

On March 15, the Gujarat state tax deputy commissioner made a comparable demand totaling Rs 8.6 crore.

The company was served with three demand orders by the Delhi and Karnataka authorities on December 30 and 31, 2023, for the purported underpayment of Rs 4.2 crore in GST in 2018.

The first demand concerned the purported underpayment of GST in annual returns and the failure to reverse input tax credit in cases of exempted supplies.

The second demand concerned the demand for additional interest based on the allegation that Zomato had computed the interest amount that needed to be paid to the government on excess input tax credit that the company had reversed.

Similar demands have been made to Zomato before; the most recent one was made on April 20 for Rs 11.82 crore for export services the company offers to its overseas subsidiaries.

The third case involved a tax demand from the Karnataka GST department that was akin to a previous, more extensive show cause notice.

The Additional Commissioner, Central Goods and Services Tax, Gurugram, sent Zomato a tax notice in 2021.

According to reports at the time, that notification required that the company pay Rs.11.82 crore, including interest and penalty charges.

The company responded in the same way, declaring its position and filing an appeal against the tax order.

Current Issue
Ace Micromatic : Pioneering Excellence in Comprehensive Manufacturing Solutions