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Zomato Raises Platform Fee Amidst GST Notice

In August 2023, the company introduced a platform fee of Rs 2, which was later raised to Rs 3

Zomato Raises Platform Fee Amidst GST Notice
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POSTED ON January 03, 2024 10:08 AM

The food delivery company Zomato has increased its platform fee from Rs 3 to Rs 4 for orders placed on its platform.

In August 2023, the company introduced a platform fee of Rs 2, which was later raised to Rs 3. On New Year's Day, the platform fee was further increased to Rs 9 in some locations. 

Last month, the company received a GST notice regarding platform fees. On December 26, it received a notice for a tax liability of Rs 401.7 crore.

Directorate General of GST Intelligence (DGGI) had sent tax notices to the company for not paying GST on delivery charges.

However, the company said that there is no tax liability on it. And it will give a suitable reply to this notice.

After the imposition of the platform fee and its increase, there was no impact on the order volume even before, as per the reports. 

Zomato and its quick commerce platform Blinkit saw the highest-ever orders and bookings on New Year's Eve as compared to previous years.

Zomato founder and CEO Deepinder Goyal posted on X, “We have delivered almost the same number of orders on New Year's Eve as on 15, 16, 17, 18, 19, 20 combined. Excited about the future.”

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