'Not Liable': Zomato Responds Firmly to Rs 401 Crore GST Notice on Delivery Charges

'Not Liable': Zomato Responds Firmly to Rs 401 Crore GST Notice on Delivery Charges
Zomato has issued a robust response to a show cause notice from the Directorate General of GST Intelligence, denying any liability for GST on delivery charges. The notice, demanding an explanation for an alleged tax liability of Rs 401.70 crore, targeted delivery charges collected by Zomato from customers on behalf of their delivery partners. Zomato, in a statement to the stock exchanges, asserted that it is not obligated to pay any tax on the delivery charges, emphasizing that these charges are collected on behalf of delivery partners who provide services directly to customers as per contractual terms. The company expressed confidence in the merit of its case and intends to submit a comprehensive response to the show cause notice. Despite a marginal dip in shares following the disclosure, Zomato maintains a strong performance with over a 100% rally in 2023.