## Zomato Faces GST Demand and Penalty
On April 19, 2023, food delivery giant Zomato received a Goods & Services Tax (GST) demand and penalty order amounting to Rs 11.81 crore for the period July 2017 to March 2021. The order comprised a GST demand of Rs 5.9 crore and a corresponding penalty of Rs 5.9 crore.
The demand pertains to export services rendered by Zomato to subsidiaries outside India during the mentioned period. Zomato responded to the show cause notice preceding the demand order with clarifications supported by documentation and legal precedents. However, the company expressed dissatisfaction with the authorities' response, citing a lack of appreciation for their submissions.
Zomato intends to challenge the order by lodging an appeal with the relevant appellate authority.
## Zomato Introduces Large Order Fleet
Earlier in the week, Zomato introduced a new service called the 'large order fleet' to efficiently handle substantial orders for gatherings, parties, and events. The fleet comprises electric vehicles and is tailored for gatherings hosting up to 50 individuals.
This new service aims to address the challenges faced by customers when placing large orders on Zomato. Previously, large orders were managed through multiple delivery agents, leading to suboptimal customer experiences.
Zomato plans to incorporate additional features such as cooling compartments and hot boxes with temperature control in the future.