Zomato Ltd. has received a demand order of Rs 17.7 crore from the West Bengal assistant commissioner of revenue for alleged non-payment of goods and services tax on delivery charges, according to an exchange filing on Wednesday.
The order, covering the period from April 2021 to March 2022, includes a GST demand of Rs 11.1 crore, Rs 5.47 crore in interest and Rs 1.11 crore in penalties, the online food delivery platform said.
The demand order has been received in respect of non-payment of GST on delivery charges and interest and penalty thereon. In its response to the show cause notice, Zomato clarified on the issue, along with relevant documents and judicial precedents, which appears to not have been appreciated by the authorities while passing the order.
"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," Zomato said.
Earlier on Aug. 29, the company had received GST demand notices totalling over Rs 4.59 crore, including interest and penalties, from authorities in Tamil Nadu and West Bengal.
Shares of Zomato closed 1.83% higher at Rs 275.75 apiece on the BSE, compared to a 0.16% decline in the benchmark Sensex.
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