(Image source from: Twitter.com/zomato)

Zomato gets Rs 401.7 Cr GST liability notice:- Zomato, the popular online food delivery company, has received a show cause notice from the Directorate General of GST Intelligence, Pune Zonal Unit, demanding a tax liability of Rs 401.7 crore along with interest and penalty. The notice is related to the collection of delivery charges by Zomato on behalf of its delivery partners.

However, Zomato has stated that it is not obligated to pay this amount as it only collects the delivery charge on behalf of its partners. The company believes that the delivery partners, not Zomato, have provided the delivery services to the customers. This stance is supported by opinions from external legal and tax advisors.

Zomato intends to submit a suitable response to the show cause notice, explaining why it disagrees with the alleged tax liability. The company remains firm in its belief that it is not liable to pay any tax on the delivery charges it collects.