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Zomato Receives Rs 4.59 Crore Tax Demand Notices

Following Zomato's recent increase, Swiggy also raised its platform fee to Rs 10 per order, up from Rs 7.

Zomato received taxes exceeding Rs 4.59 crore, including interest and penalties on GST tax liability, from authorities in Tamil Nadu and West Bengal.

They are planning to appeal the orders issued by the assistant commissioner of GST and Central Excise in Tamil Nadu and the assistant commissioner of Revenue in West Bengal.

The Tamil Nadu tax authority issued an adjudication order for GST of Rs 81,16,518, including applicable interest (not specified) and a penalty of Rs 8,21,290, under Section 73 of the Central and Tamil Nadu Goods and Services Tax Acts, 2017.

Furthermore, the West Bengal authority issued an adjudication order for GST of Rs 1,92,43,792, with interest of Rs 1,58,12,070 and a penalty of Rs 19,24,379, under Section 73 of the Central and West Bengal Goods and Services Tax Acts, 2017.

The food delivery giant stated in a regulatory filing that it had provided a response with relevant documents and judicial precedents, which the authorities seem to have not considered while issuing the order.

Zomato remarked that the company is confident it has a substantial case to defend the matter on appeal, and it does not expect a financial impact on the company.

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