Food delivery major Zomato has received a Rs 401.7 crore show cause notice from the Directorate General of GST Intelligence (DGGI) over ‘unpaid taxes’ on delivery charges collected from customers, the company said in a regulatory filing late
on Wednesday.
The company claimed that it is not liable to pay the penalty for the period from October 29, 2019, to March 31, 2022, as the amount collected from customers is “on behalf of the delivery partners during the referred period.”
Given the contractual terms and conditions mutually agreed upon, the delivery partners have provided the delivery services to the customers and not the company, the filing read.
Zomato said it would be filing an appropriate response to the notice. “At this stage, no order of any kind has been passed and as mentioned above, the company believes that it has a strong case on merit,” it said.
Last month, the DGGI had reportedly sent GST notices worth Rs 750 crore to Zomato and Swiggy, seeking Rs 400 crore from the former and Rs 350 crore from the latter.
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