West Bengal government slaps Rs 17.7 crore GST demand and penalty order on Zomato; company to appeal

Online food delivery platform Zomato has been hit with a significant GST demand order from the West Bengal government. The company was issued a notice by the Assistant Commissioner of Revenue demanding Rs 17.7 crore in GST, interest, and penalties. The period for which Zomato is facing these GST charges and penalty is -- from April 2021 to March 2022.The Assistant Commissioner of Revenue, Government of West Bengal confirmed demand of GST of Rs 11,12,79,712 with interest of Rs 5,46,81,021 and penalty of Rs 1,11,27,971.
The demand stems from alleged non-payment of GST on delivery charges. Zomato, however, maintains its innocence and has stated that it will be appealing the order.
"We believe that we have a strong case and will be challenging this demand before the appropriate authority," the company said in a regulatory filing. "The Company in its response to the show cause notice had 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," Zomato said. 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, it added.
This is not the first time Zomato has faced tax-related issues. The company has received similar demands from other authorities in the past.