The company will file an appeal against the order before the appropriate authority.
Online food delivery aggregator Zomato said it has received a GST demand order of Rs 17.7 crore plus interest and penalty from the Assistant Commissioner of Revenue, West Bengal. The demand order received by the company on Tuesday is in relation to non-payment of GST on delivery charges and interest thereon, penalty. According to PTI news, Zomato said in a regulatory filing that we believe we have a strong case on merits and the company will file an appeal against the order before the appropriate authority.
There is so much demand
According to the news, this order is for the period April 2021 to March 2022, which has been passed by the Revenue Assistant Commissioner of the Government of West Bengal, confirming the demand of GST of Rs 11,12,79,712 along with interest of Rs 5,46,81,021 and a penalty of Rs 1,11,27,971. Zomato said that the company had given clarification on the issue with relevant documents and judicial precedents in response to the show cause notice, which was not appreciated by the authorities while passing the order.
No financial impact expected on the company
The company believes that it has a strong case to defend the matter before the relevant appellate authority and does not expect any financial impact on the company. The online food delivery giant has been receiving tax demand orders from various authorities in recent times. Last month, the company decided to shut down its inter-city service ‘Legends’ with immediate effect. Under the Legends service, Zomato used to supply famous products from select cities to other cities.
GST demand has been received from here also
Zomato received a notice from the Tamil Nadu GST authority a few days ago demanding a penalty and interest. The company said it plans to appeal against the demand orders passed by the Assistant Commissioner of Revenue, Assistant Commissioner of GST and Central Excise Department, Nungambakkam division, Tamil Nadu. The Tamil Nadu tax authority passed the order under section 73 of the Central Goods and Services Tax Act, 2017 and the Tamil Nadu Goods and Services Tax Act, 2017 for GST of Rs 81,16,518 along with applicable interest (quantified not specified) and a penalty of Rs 8,21,290.
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