National Desk, 29th December: Zomato, the renowned food delivery service, encounters financial scrutiny with a show cause notice from GST authorities for an unpaid sum of Rs 402 crore covering the period from October 29, 2019, to March 31, 2022.
The core of the dispute lies in the government’s claim for GST on delivery charges collected by Zomato. In November, the Directorate General of GST Intelligence (DGGI) issued pre-demand notices to leading food delivery platforms, including Zomato and Swiggy, seeking a total of Rs 750 crore in GST payments.
Zomato strongly contests its tax liability, asserting its role as a fee collector for delivery partners. In its official response to the Bombay Stock Exchange (BSE), Zomato plans to submit a detailed reply, basing its argument on mutually agreed contractual terms, maintaining that delivery partners bear direct service provider responsibilities to customers, absolving Zomato from direct tax obligations.
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