Zomato says 'not liable' to pay any tax on delivery charges in response to GST notice
Food delivery giant Zomato has said it is "not liable" to pay any tax on delivery charges responding to a notice served by the Directorate General of Goods and Services Tax Intelligence (DGGI).
As per the notice, Zomato was asked to pay 18 percent tax on delivery charges, which the DGGI claims falling under the services category.
The food delivery company has been asked to pay GST of Rs. 401 crore along with an interest and penalty for a period from October 29, 2019 to March 31, 2022.
Zomato has issued a written response which reads, "The Company strongly believes that it is not liable to pay any tax since the delivery charge is collected by the Company on behalf of the delivery partners.
"Further, in view of the contractual terms and conditions mutually agreed upon, the delivery partners have provided the delivery services to the customers and not the Company. This is also supported by opinions from our external legal and tax advisors."
"The Company will be filing an appropriate response to the SCN," it adds.
As per reports, the GST Council in 2022 levied a five percent tax on food delivery services.
It also added "restaurant services" which led the companies to pay five percent tax.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
CRR cut, AI ethics push, and SORR benchmark: Experts hail RBI’s pragmatic policy moves
Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% while the cash reserve ratio (CRR) has been slashed by 50 basis points to 4 percent, media reports said.
JP Morgan gives 'overweight' rating to Adani Group bonds
Mumbai: US investment bank JP Morgan has assigned an 'overweight' rating to four bonds issued by the Adani Group, citing the group's capacity to scale and grow through internal cash flows, which reduces the likelihood of credit stress.
LG Electronics files DRPH with SEBI; IPO size expected to be over RS 15,000 cr
Mumbai: South Korean electronics giant LG Electronics has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Friday for the proposed public listing of its Indian business, according to a notification on the Bombay Stock Exchange (BSE).
De-dollarisation not on India's agenda; derisking domestic trade is: RBI Governor Shaktikanta Das
Mumbai: India has not initiated any steps towards de-dollarisation and is solely focused on mitigating risks to domestic trade from geopolitical uncertainties, Reserve Bank of India (RBI) Governor Shaktikanta Das clarified on Friday, media reports said.
Latest News
TVK leader booked for social media post urging ‘Gen Z revolution’ after Karur tragedy
PoK protests: Agitation escalates as civilians toss containers into river, clash with Pakistani forces
Nine Assam workers killed in accident at Tamil Nadu power plant site, PM Modi announces compensation
Denmark to tighten student visa rules, restrict family entry for Bangladeshi and Nepali applicants
