Zomato stated it will likely be submitting an attraction in opposition to the tax demand order earlier than the suitable authority. File (representational picture)
| Photo Credit: Reuters
Online meals supply platform Zomato has acquired a tax demand and penalty order of ₹11.82 crore associated to GST on export companies offered to its subsidiaries situated outdoors India from July 2017 to March 2021.
The order was handed by the Additional Commissioner, Central Goods and Services Tax, Gurugram, elevating the GST demand of ₹5,90,94,889, with relevant curiosity (not quantified) and penalty of ₹5,90,94,889.
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“We believe that we have a strong case on merits, and the company will be filing an appeal against the order before the appropriate authority,” Zomato said in a regulatory submitting late night on April 19.
It knowledgeable that the demand order has been acquired, “confirming demand of GST on export services provided by the company to its subsidiaries located outside India during the period July 2017 to March 2021 by upholding that such services do not fulfil the conditions for the supply to qualify as export of service under GST”.
“The company, in its response to the show cause notice, had clarified on the allegations, along with supporting documents and judicial precedents, which appears not to have been appreciated by the authorities while passing the order,” it added.
