Zomato received GST notice of ₹ 401 crore

Zomato received a GST notice of ₹ 401 crore: The company said - takes delivery charges on behalf of partners, not responsible for paying tax

Zomato received GST notice of ₹ 401 crore

Food delivery company Zomato has received a notice of unpaid Goods and Services Tax (GST) of ₹401.7 crore. The company has received this notice for the outstanding tax on delivery charge collection from 29 October 2019 to 31 March 2022.

Zomato received this notice from the GST Department on 26 December. The company has given this information in its BSE filing. However, Zomato has said that it is not responsible for paying any kind of tax on delivery charges.

Because delivery charges are collected on behalf of delivery partners. As per contractual terms and conditions, delivery partners provide this (delivery) service to the customers and not to the company. Zomato has said that it is taking legal advice to respond to the notice.

Even before this, food delivery platforms Zomato and Swiggy have received a pre-demand notice of Rs 750 crore from the Directorate General of GST Intelligence i.e. DGGI.