Zomato says it will appeal against Rs 23-crore GST notification

New Delhi:

Food delivery app Zomato today said it has received a Goods and Services Tax (GST) notice of over Rs 23 crore and will appeal against the demand.

In a letter to capital markets, Zomato company secretary and compliance officer Sandhya Sethia said the company believes there are strong grounds to oppose the GST requirement.

Ms Sethia said: “We believe our case is strong and the company will appeal the order to the relevant authorities.”

The notice said Zomato received demand for Goods and Services Tax (GST) on the excess amount levied on it as input tax credit, along with interest and penalty.

In response, Zomato said it had provided clarification on the issue along with relevant documents and judicial precedents and “the authorities did not appear to be aware of this while passing the order.”

“The company believes that it has sufficient grounds to defend the matter to the Appellate Body and does not anticipate any financial impact on the company,” Ms Setia said in the letter.

Launched in 2010, Zomato’s technology platform connects customers, restaurants and delivery partners and is used by people to search and discover restaurants, read and write reviews and order food delivery.