Zomato receives GST order from Gujarat Deputy Commissioner

Zomato: The offenses mentioned in the order, including the alleged surplus availing of input tax credit and the brief payment of GST, were identified during audit proceedings.

Introduction:

Zomato Limited, a prominent player in the food delivery industry, recently disclosed receiving a GST order from the Deputy Commissioner of State Tax in Gujarat for the fiscal year 2018-19. 

The order demands a substantial GST payment along with interest and penalty charges, following an audit of GST returns and accounts.

Details of the Order:

According to Zomato’s filing, the GST order demands a payment of Rs 4,11,68,604, in addition to interest and penalty charges totaling Rs 8,57,77,696. The order is a result of an audit conducted by the Deputy Commissioner of State Tax, Gujarat.

Nature of Action Taken:

The action taken against Zomato is detailed in an Adjudication Order passed under Section 73 of the CGST Act, 2017, and GGST Act, 2017. 

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The order imposes a GST demand, interest, and penalty for alleged violations related to availing excess input tax credit and short payment of GST identified during the audit proceedings.

Zomato’s Response:

Despite the significant demand made by the GST order, Zomato has expressed confidence in its position. 

The company intends to challenge the order before the appropriate authorities. Zomato remains committed to addressing the matter through legal channels to ensure a fair resolution.

Conclusion:

The GST order received by Zomato highlights the complexities and challenges faced by companies in complying with tax regulations. 

Zomato’s commitment to challenging the order underscores its dedication to upholding compliance standards while protecting its interests. The outcome of Zomato’s challenge will be closely watched by stakeholders in the industry.