Business: Zomato announced on Wednesday that it has received a show cause notice from the Directorate General of GST Intelligence for non-payment of Central Goods and Services Tax (GST) on delivery charges in the past.

The show cause notice issued to Zomato has prompted the Gurugram-based company to respond to allegations of non-payment of nearly ₹402 crore in Central Goods and Services Tax (GST) on delivery charges.

The notice requires Zomato to explain why they haven’t settled this alleged tax liability, including interest and penalties.

The GST charges in question pertain to the period from October 29, 2019, to March 31, 2022. Zomato contends that it is ‘not liable to pay any tax’ on delivery charges, arguing that the amount is collected on behalf of delivery partners.

Zomato and Swiggy are now consulting lawyers and tax officers to file an official query to the Centre regarding the same, reported The Economic Times.