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Writer's pictureRISHI KORDE

Zomato Receives Tax Notice of INR 402 Crores

Updated: Dec 31, 2023






Zomato, a major player in the foodtech industry, has been issued a show cause notice of INR 402 Crores by the Directorate General of GST Intelligence, Pune Zonal Unit, citing unpaid taxes on delivery charges collected from customers. Zomato contends that it is not obligated to pay the tax as the delivery charge is collected on behalf of delivery partners. The company asserts that, according to mutually agreed contractual terms, the delivery partners provide services directly to customers, and not to Zomato. This stance is supported by legal and tax opinions obtained from external advisors, according to Zomato.


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