Rs 800 Cr GST Demanded Against Zomato

The Food delivery application Zomato Ltd has been slapped by the Goods and Service Tax ( GST ) demand of Rs 800 Cr for the period between October 2019 and March 2022. The authorities have issued a demand for alleged discrepancies in tax compliance.

The case involves the classification and payment of GST on certain services. Zomato has yet to comment on the demand and is expected to respond or appeal if discrepancies are disputed. This development highlights ongoing scrutiny by tax authorities on large tech-based food delivery platforms under GST laws.

The order also includes a penalty of the same amount, totalling ₹803.4 crore in demand, along with applicable interest. The Zomato in its regulatory filing said that “ the company has received an order on 12 December 2024 which is dated 12 November 2024 for the period 29 October 2019 to 31 March 2022 passed by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra confirming the demand of GST of ₹401,70,14,706 with interest as applicable and penalty of ₹401,70,14,706,".

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 The demand is on alleged non-payment of GST on delivery charges. It was stated that the demand order has been received in respect of non-payment of GST on delivery charges with interest and penalty thereon.

Zomato has been subject to increased regulatory focus due to its large-scale operations in India's food delivery ecosystem. The company is expected to address these allegations and may contest the demand through legal or appellate mechanisms, focus on regulatory adherence.

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