IT Department Drops Rs.5.9 Crore GST Demand From Zomato

IT Department Drops Rs.5.9 Crore GST Demand From Zomato

Strap – The company is however appealing a Rs.803 crore demand

Food and grocery delivery firm Zomato has announced that the Income Tax authorities have dropped a Rs.5.9 crore Goods and Services Tax (GST) demand for unpaid dues from July 2017 to March 2021.

The company said it received a favorable order from the Income Tax Commissioner of Appeals, Gurugram Haryana.

The demand was raised in April last. The company had then stated that it did not see any merit in the tax demand.

Along with penalty on the tax dues, the demand was for Rs.11.82 crore. The tax was determined based on export services provided by the company to its foreign subsidiaries.

Meanwhile, Zomato has received several other tax notices from various GST authorities across the country.

The biggest one is of Rs.803, an alleged unpaid tax for 28 October 2019 to 31 March 2022.