The GST department has given notice to food delivery company Zomato Ltd. for tax liability. The company said that it has received a show cause notice of Rs 401.7 crore from the GST authorities including tax liability along with interest and penalty related to delivery charges.
According to the exchange filing, the matter pertains to tax demand for the period from October 29, 2019 to March 31, 2022.
The company said- Why should we pay tax?
The company says that it is not liable to pay tax, because the delivery charge goes to the delivery partners. Such terms and conditions of the contract are mutually agreed upon.
The Gurugram based food delivery company said, ‘Our legal advisors and tax advisors also have the same opinion.’ The company has said that it will soon file a reply to the show-cause notice.
