Key Points
On Thursday, shares of food delivery platform Zomato bucked the trend and opened 1.7% lower despite upbeat broader markets rally to set new highs.Reuters..
What triggered the fall was a show cause notice for Rs 402 crore in unpaid goods and services tax (GST) issued to the company by tax authorities...
Late Wednesday, Zomato filed a notice with stock exchanges about being served a notice by the Directorate General of GST Intelligence (DGGI) on December 26, asking the Gurugram-based company to show cause on why a tax demand should not be raised on delivery charges it collects from its users...
Under GST laws, delivery of food is a service liable to be taxed at 18%, and the government is of the view that since the platforms have been collecting a service fee, they must pay the tax...
Industry executives suggest if the precedent gets set on platforms paying GST on delivery fees collected on behalf of delivery partners, the tax net could be cast on operators beyond food delivery, and cover segments employing gig workers such as quick commerce, grocery delivery, e-pharmacies and package deliveries...
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Zomato gets Rs 402 crore unpaid GST notice on delivery charges collected from customers
29, Dec, 23Zomato, the popular food delivery platform, has encountered a financial challenge as it received a show cause notice from the goods and services tax (GST) authorities for an unpaid amount of Rs 402 crore.
Zomato receives Rs 402 crore show cause notice over unpaid GST on delivery charges
27, Dec, 23Zomato said it received the GST notice on December 26 to show cause as to why an alleged tax liability of the said amount for the period October 29, 2019 to March 31, 2022 should not be demanded from the company.
Zomato gets ₹ 401 crore show-cause notice over delivery charges
28, Dec, 23This tax notice is based on the delivery charges collected from customers.
Zomato shares drop 5% following Rs 402 crore GST tax notice; know the details
28, Dec, 23India Business News: Zomato's stock declined by 5% on the BSE due to a show-cause notice from GST authorities, which cited a Rs 402-crore tax liability.