Zomato Ordered to Pay ₹803 Crore in GST Taxes and Penalties

Indian tax authorities demand payment from Zomato for alleged non-payment of GST on delivery charges from 2019 to 2022.

The Indian tax department has issued a demand for ₹803.4 crore (approximately $95 million) from Zomato, including unpaid GST, penalties, and interest.
The tax order pertains to the period between October 29, 2019, and March 31, 2022, and alleges non-payment of GST on delivery charges.
Zomato claims it is not liable for the tax, arguing that delivery charges are collected on behalf of delivery partners who provide the service.
The company has stated that it will appeal the decision, citing support from external legal and tax advisors who believe the case has merit.
The tax demand exceeds half of Zomato's profits for the fiscal year ending March 2024, posing a significant financial challenge for the company.