Zomato Receives Massive Rs 803 Crore GST Demand Notice

• General

• December 13, 2024

Food delivery platform Zomato has received another Goods and Services Tax (GST) demand notice. The company revealed in a regulatory filing that it has been asked to pay ₹803.4 crore in GST dues pertaining to delivery charges collected from customers.

GST Demand Details

• GST office in Maharashtra's Thane has passed an order whereby Zomato has been asked to pay ₹401.7 crore as GST dues for delivery charges that have been accrued between October 29, 2019 and March 31, 2022.
• ₹401.7 crore have been demanded as interest and penalties.

Zomato said it would file an appeal for this order before the proper authorities. The company considers it a significant matter and is consulting with lawyers to get over the problem. In fact, it is for the first time that Zomato has received such notices related to GST.

How GST is Charged on Orders at Zomato

For each order on Zomato, there are three basic constituents in the bill:

• Food Cost: The price of the ordered food.
• Delivery Charges: It is applicable only on those not registered and does not apply to those who are registered for Zomato Gold.
• GST on Food and Platform Fees: A 5% GST levy introduced by the GST Council from January 2022.

Zomato has been under attacks multiple times on its GST compliance although still explores the nitty-gritties surrounding taxation in the business of digital food delivery.