Zomato has received a tax demand and penalty order of Rs 11.82 crore related to GST on export services provided to its subsidiaries located outside India from July 2017 to March 2021.
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Zomato has increased its platform fee on customers by 25 per cent. It means for every order from the company it will have Rs. 5 per order as platform cost. Zomato has increased the platform fee in the National Capital Region, Bengaluru, Mumbai, Hyderabad and Lucknow, reported Hindustan Times. Earlier in January the company had increased the platform fee for users from ₹3 to ₹4. Swiggy already charges a platform fee of ₹5 per order.
Zomato Share Price Today
Zomato shares declined by over 4.50 per cent on BSE today (April 22, 2024) in the first trading session after the news broke that its platform fee is increased in some markets in the country and also after the impact of Zomato being slapped with a GST penalty worth Rs 5.95 crore.
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The stock opened at Rs 193.00 and touched Rs 197.80, a 4.55 per cent jump from its Friday’s close of Rs 189.20. Before delcine, it was trading up by 1.96 per cent, or Rs 3.70, at Rs 192.90 at 9:38 am on Monday.
Zomato slapped with GST penalty
Zomato has received a tax demand and penalty order of Rs 11.82 crore related to GST on export services provided to its subsidiaries located outside India from July 2017 to March 2021.
The order was passed by the Additional Commissioner, Central Goods and Services Tax, Gurugram, raising the GST demand of Rs 5,90,94,889, with applicable interest (not quantified) and penalty of Rs 5,90,94,889.
“We believe that we have a strong case on merits, and the company will be filing an appeal against the order before the appropriate authority,” Zomato stated in a regulatory filing late evening on Friday.
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It informed that the demand order has been received, “confirming demand of GST on export services provided by the company to its subsidiaries located outside India during the period July 2017 to March 2021 by upholding that such services do not fulfil the conditions for the supply to qualify as export of service under GST”.
