A penalty notice for the GST has been sent to Zomato the popular online food delivery app via the Deputy Commissioner of State Tax in Gujarat. Under the disclosure made to the stock exchanges, Zomato has obtained a demand order because of the overuse of the Input tax credit (ITC) and underpayment of GST.
An order for FY 2018-19 has been received by the company according to the audit of GST returns and accounts via the Deputy Commissioner of State Tax, Gujarat asking for a demand of GST of ₹4,11,68,604/-, including with applicable interest and penalty totalling to ₹8,57,77,696,” remarked Zomato in its exchange filing.
The action chosen is established on the Adjudication Order issued under Section 73 of the CGST Act, 2017, and GGST Act, 2017, as per Zomato. The payment of GST totalling Rs 4,11,68,604, is needed as per this order including the interest amounting to Rs 4,04,42,232 and a penalty of Rs 41,66,860. These amounts together constitute the total sum cited.
Zomato obtained a show cause notice of ₹402 crore for unpaid GST pertinent to delivery charges, in December 2023. This notice contains interest and penalty charges for collecting customer delivery fees between October 29, 2019, and March 31, 2022.
