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Strongly believe we're not liable to pay any tax on delivery charge, says Zomato

Money Control

Money Control · 1y ago

Strongly believe we're not liable to pay any tax on delivery charge, says Zomato

Food tech company Zomato has stated that it is not liable to pay tax on delivery charges as it believes the amount is collected on behalf of its delivery partners. The statement follows a demand notice from the Directorate General of GST Intelligence (DGGI), requesting payment of pending tax dues. DGGI argues that Zomato is liable to pay 18% GST on the delivery fee, but industry experts contend that the burden falls on gig workers, who are exempt from GST. Zomato plans to file a response to the notice and asserts that it has a strong case.

Related News

Not liable to pay any tax: Zomato on ₹402 crore tax notice

CNBC

Not liable to pay any tax: Zomato on ₹402 crore tax notice

Zomato has received a show cause notice over an alleged tax liability of ₹401.70 crore. It's based on the amounts collected as delivery charges from the customers on behalf of the delivery partners. "The company strongly believes it's not liable to pay any tax since delivery charge is collected by the company on behalf of the delivery partners," Zomato said.

Zomato receives Rs 402 crore show cause notice over unpaid GST on delivery charges

Economic Times

Economic Times · 1y ago

Zomato receives Rs 402 crore show cause notice over unpaid GST on delivery charges

Zomato, the online food ordering platform, has received a Rs 402 crore show cause notice from GST authorities for unpaid tax on delivery charges. The notice was issued by the Directorate General of GST Intelligence (DGGI) and demands the alleged tax liability be paid for the period from October 2019 to March 2022. Zomato argues that it is not liable to pay tax on the delivery charges as they are collected on behalf of the delivery partners. The company will be filing a response to the notice.

Why GST authorities sent show cause notice of Rs 401.7 crore to Zomato

IndianStartupNews

IndianStartupNews · 1y ago

Why GST authorities sent show cause notice of Rs 401.7 crore to Zomato

Foodtech giant Zomato has received a show cause notice demanding an explanation for an alleged tax liability of Rs 401.70 crore. The Directorate General of GST Intelligence claims that delivery charges collected from customers are subject to GST. However, Zomato argues that it is not liable for this tax, as the delivery charges are collected on behalf of the delivery partners and not as revenue for the company. Zomato plans to file a comprehensive response to the notice, expressing confidence in the merit of its case. The issue of GST on delivery fees is also faced by Zomato's rival, Swiggy.

Zomato not the first anywhere, always late to the party: Deepinder Goyal

Inshorts · 10m ago

Zomato not the first anywhere, always late to the party: Deepinder Goyal

Zomato CEO Deepinder Goyal, when asked about identifying and anticipating the company's growth engines, told Moneycontrol, "We don't anticipate much anyway. We're always late to the party." He added, "We were not the first in food delivery, we were not the first in quick commerce, we're not the first in events and live events...Even at Hyperpure, we're not the first."

Zomato shares open flat after tax authorities slap notice to food delivery firms

Inc42 · 1y ago

Zomato shares open flat after tax authorities slap notice to food delivery firms

Zomato shares opened flat after the news that food delivery platforms Zomato and Swiggy have been served tax notices over non-payment. The notices amount to a cumulative goods and services tax (GST) worth around INR 1,000 Cr. The tax authorities consider the delivery charges collected by these platforms as their revenue. Both Zomato and Swiggy have been asked to pay INR 500 Cr each, which is the 18% tax levied on the total amount collected as delivery fees. This development could potentially disrupt the cash flow of these food delivery giants.

Fresh Trouble Brews For Zomato, Gets INR 92 Cr Tax Demand Notice

Inc42 · 1y ago

Fresh Trouble Brews For Zomato, Gets INR 92 Cr Tax Demand Notice

Zomato has received an order to pay service tax of INR 92 crore for the period of October 2014 to June 2017, in addition to a penalty and applicable interest. This comes after the company recently received a GST notice of INR 23.26 crore for FY19. However, Zomato believes it has a strong case to defend the matter and does not expect any financial impact. The company has been facing various tax-related notices in recent months. Despite these challenges, Zomato reported a profitable quarter with a significant increase in profit after tax.

Zomato pilots priority deliveries, tests ‘pay later’ feature

Economic Times

Economic Times · 1y ago

Zomato pilots priority deliveries, tests ‘pay later’ feature

Food delivery platform Zomato is testing priority deliveries, allowing users to pay an extra fee to get their orders delivered faster. The additional charge is applicable to members of Zomato Gold, the company's loyalty program. In addition, Zomato is piloting a 'pay later' feature where users can place orders and make the payment before the food is delivered. This move comes shortly after Zomato increased its platform fee by 25%. The company recently reported its third consecutive quarterly profit of INR 138 crore for the October-December 2023 period.

Zomato’s GST Troubles: Foodtech Giant Receives Another Demand Notice

Inc42 · 11m ago

Zomato’s GST Troubles: Foodtech Giant Receives Another Demand Notice

Zomato has been hit with a GST tax demand of INR 1.89 lakh, along with interest and penalty, by the Sales Tax Officer in Delhi. The food delivery platform has stated that it will pay the applicable dues and the cost of litigation. This comes after Zomato received GST tax demand and penalty orders totaling INR 4.59 crore from authorities in Tamil Nadu and West Bengal earlier this week.

'Being vegetarian in India feels like curse,' says Zomato user; flags 'veg mode' fee

Inshorts · 6m ago

'Being vegetarian in India feels like curse,' says Zomato user; flags 'veg mode' fee

A Zomato user took to social media to share a screenshot showing Zomato charging ₹2 extra as "veg mode enablement fee". "Being a vegetarian in India these days feels like curse! Zomato's latest masterstroke—introducing an "extra charge" for the veg enablement fleet," he wrote. "Thanks, Zomato, for proving once again that being veg is now a luxury tax," he added.

Govt orders Zomato to pay $95 mn in taxes, fines

VCCircle

VCCircle · 7m ago

Govt orders Zomato to pay $95 mn in taxes, fines

India's tax department has ordered Zomato to pay $94.8 million in taxes and fines for non-payment of certain taxes from 2019 to 2022. The order includes outstanding taxes of $47.4 million and an equal amount in penalties. Zomato, a popular food delivery platform, stated it would challenge the order, believing it has a strong case supported by external legal and tax advisors. This comes as Zomato faces scrutiny for alleged breaching of competition laws and favoring selected restaurants. Despite these challenges, Zomato's shares have more than doubled this year due to increased food delivery and quick-commerce activities.

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