On-line meals supply platform Zomato has obtained a tax demand and penalty order of Rs 11.82 crore associated to GST on export providers supplied to its subsidiaries situated exterior India from July 2017 to March 2021. The order was handed by the Extra Commissioner, Central Items and Companies Tax, Gurugram, elevating the GST demand of Rs 5,90,94,889, with relevant curiosity (not quantified) and penalty of Rs 5,90,94,889.
“We imagine that we have now a powerful case on deserves, and the corporate will likely be submitting an attraction towards the order earlier than the suitable authority,” Zomato acknowledged in a regulatory submitting late night on Friday. It knowledgeable that the demand order has been obtained, “confirming demand of GST on export providers supplied by the corporate to its subsidiaries situated exterior India through the interval July 2017 to March 2021 by upholding that such providers don’t fulfil the situations for the provision to qualify as export of service below GST”.
“The corporate, in its response to the present trigger discover, had clarified on the allegations, together with supporting paperwork and judicial precedents, which seems to not have been appreciated by the authorities whereas passing the order,” it added.
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