Zomato to Challenge Rs 5.6 Crore GST Demand from West Bengal Government

Zomato, the online food delivery platform, plans to challenge a ₹5.6 crore GST demand issued by the West Bengal government for the financial year 2020-21. This sum includes GST, interest, and penalties. Initially, Zomato indicated it might pay the amount to avoid expensive litigation, but later the company decided to appeal the order, citing a strong case on merit. This is the second GST notice Zomato received from West Bengal in recent months, following an earlier ₹3.69 crore notice for GST on delivery charges for 2019-20. Zomato has also received similar tax demands from other states like Tamil Nadu, Delhi, Karnataka, Haryana, and Gujarat. Despite these legal challenges, the company has experienced strong financial growth, reporting a profit of ₹253 crore in Q1 FY25, compared to ₹2 crore in Q1 FY24.