Food delivery app Zomato today said it has received a goods and services tax (GST) notice of over Rs 23 crore, and will file an appeal against the demand.
In a letter to the capital markets, Zomato company secretary and compliance officer Sandhya Sethia said the company believes it has a strong case against the GST demand.
“We believe that we have a strong case on merits and the company will be filing an appeal against the order before the appropriate authority,” Ms Sethia said.
The notice said Zomato received the GST demand in respect of excess amount that it got as input tax credit, along with interest and penalty.
In response, Zomato said it had clarified on the issue along with relevant documents and judicial precedents, “which appears to not have been appreciated by the authorities while passing the order.”
“The company believes that it has a strong case to defend the matter before the appellate authority and does not expect any financial impact on the company,” Ms Sethia said in the letter.
Launched in 2010, Zomato’s technology platform connects customers, and restaurant and delivery partners as people use the platform to search and discover restaurants, read and write reviews, and order food delivery.