Thursday, September 19, 2024
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Zomato hikes platform fees days after getting GST penalty

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Food delivery aggregator Zomato has recently disclosed that it has been charged with a GST demand and penalty order totaling Rs 11.81 crore for the period spanning July 2017 to March 2021. The order comprises a GST demand of Rs 5.9 crore alongside a penalty of an equal amount. Zomato stated that it received the demand order following a show cause notice related to export services.

Just days after this, Zomato has implemented a 25% increase in its platform fee for food delivery, now standing at Rs 5 per order. However, it’s worth noting that customers enrolled in its Zomato Gold loyalty program are exempt from this fee. Additionally, Zomato has decided to halt its intercity delivery service, Legends, according to media reports.

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