Zomato Gets Show Cause Notice For Rs 401.7-Crore GST Demand On Delivery Charges

Zomato Ltd. said it received a show cause notice from GST authorities for alleged tax liability of Rs 401.7 crore along with interest and penalty related to delivery charges collected.

The tax demand is for the period from Oct. 29, 2019 to March 31, 2022, according to an exchange filing.

The company said it is not liable to pay any tax since the delivery charge is collected on behalf of the delivery partners and such contractual terms and conditions are mutually agreed upon. "This is also supported by opinions from our external legal and tax advisors."

The Gurugram-based food delivery company said it will file a response to the show cause notice.