Zomato's reply to the notices

Zomato reported that it had provided a detailed response to the authorities, including necessary documents and relevant judicial precedents. However, the company alleges that this information was not thoroughly considered by the authorities before issuing their orders. Despite the tax demands, Zomato is confident in its ability to challenge these claims and believes it has a strong case for appeal.

The tax demands were issued under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017, along with the respective state-specific GST Acts for Tamil Nadu and West Bengal. This section addresses situations where taxes have either not been paid or have been underpaid, whether due to fraud or other reasons, and grants authorities the power to demand the outstanding amounts, including penalties and interest.

Although the amounts in question are significant, Zomato has stated that it does not anticipate these tax demands will have a financial impact on the company. The company is preparing to appeal the orders and remains confident in its legal position. As the situation evolves, Zomato intends to explore all legal options available to resolve the matter in its favor.