The share price closed at Rs 115.45, down 0.90 percent from the previous close of Rs 116.50.
Online food delivery platform Zomato has received GST notices worth more than Rs 400 crore on delivery charges, media reports said on Wednesday. Customers are charged a certain amount by online meal delivery services as delivery fees.
Zomato has received a tax demand exceeding Rs 400 crores from the Directorate General of GST Intelligence (DGGI), according to the report. According to CNBC-TV18, the DGGI views delivery as a service for which the two businesses must pay goods and services tax (GST) between July 2017 and March 2023.
Zomato declined to comment when contacted. Zomato defines “delivery charge” as the amount paid by the delivery partners who go door to door to deliver food.
Businesses merely charge delivery partners for that expense after collecting it from customers. However, reports state that tax officials do not concur with this.
The platform fee of Rs 2 per order was introduced by the company in April, regardless of the cart value. Zomato also raised its platform fee in August from Rs 2 to Rs 3 per order. Zomato Gold users, who had previously been exempt, began to pay the platform fee.
Net revenue increased by 71% annually, from Rs 1,661.3 crores in Q2FY23 to Rs 2,848 crores in Q2FY24, according to the company. From a loss of Rs 250.8 crores in Q2FY23 to a profit of Rs 36 crores in Q2FY24, the company’s net loss has decreased by 114% year over year.
Foreign institutional investors own 54 percent of the company, the general public owns 32 percent, and domestic institutional investors own 13 percent.
Zomato is a large-cap company with a market capitalization of Rs 1,01,482 crores. The company’s share price has climbed by 82 percent and 91 percent year to date.
Zomato Limited, founded in 2010, is one of the leading online Food Service platforms in terms of food value sold. Its services include food delivery, dining out, and loyalty programs, among others. Zomato had a strong footprint across 23 countries as of December 31, 2020, with 131,233 active food delivery restaurants, 161,637 active delivery partners, and an average monthly food order of 10.7 million customers.
Written by Sriram KV
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