Food and grocery delivery giant Zomato has received relief from tax authorities as a demand for Rs 5.9 crore in unpaid Goods and Services Tax (GST) has been dropped.
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In a regulatory filing, Zomato stated that it had received a favorable order from the Commissioner (Appeals) in Gurugram, overturning an earlier demand order passed by the Additional Commissioner, Central Goods and Services Tax, Gurugram. The tax demand was initially raised for the period from July 2017 to March 2021.
The company had contested the demand since April last year, maintaining that it saw no merit in the claim. Along with penalties, the total demand had amounted to Rs 11.82 crore. The tax assessment was based on export services provided by Zomato to its foreign subsidiaries.
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This is not the only tax-related challenge Zomato has faced. The company has received multiple GST notices from various authorities across the country. The largest of these is a Rs 803 crore GST demand, related to alleged unpaid taxes for the period from October 29, 2019, to March 31, 2022. Zomato is currently appealing against this claim.
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Despite these tax disputes, Zomato continues to expand its operations in the food and grocery delivery sector. The company has assured investors that it is addressing all compliance matters in accordance with legal requirements.
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