Zomato Ltd, the popular online food delivery platform, disclosed receiving a show cause notice from the Goods and Services Tax (GST) office, citing a supposed tax liability of ₹401.7 crore, along with interest and penalties. The notice pertains to the period from October 29, 2019, to March 31, 2022, regarding the collection of delivery fees from customers.
Zomato however asserts that as per contractual terms, delivery partners, not the company, provided services. No formal order has been issued yet, and Zomato plans to submit a response, believing it has a strong case. The significant notice amount poses a challenge relative to Zomato's reported financial figures in the September quarter.