Team Blitz India
NEW DELHI: Food delivery platform Zomato received a Rs 401.7 crore show-cause notice from the Directorate General of GST Intelligence. the company said in a regulatory filing late. The notice is based on the non-payment of goods and services tax (GST) on money collected by the company as delivery charges from the customers.
In the regulatory filing, the company said, “The show cause notice requires the company to show cause as to why an alleged tax liability of Rs 401,70,14,706 along with interest and penalty for the period from October 29, 2019, to March 31, 2022, should not be demanded from the company.
“The amount alleged in the SCN is based on the amounts collected by the company as delivery charges from the customers on behalf of the delivery partners during the referred period.”
Zomato, however, said that it was not liable to pay any tax on delivery charges as it was collected on behalf of the delivery partners.