Taxman slaps GST demand of Rs 750 cr on Swiggy and Zomato
The Directorate General of GST Intelligence has sent Goods and Services Tax (GST) demand notices to the food aggregators Zomato and Swiggy, media reports said on Wednesday.
According to CNBC TV-18, Zomato has been issued a GST notice amounting to Rs 400 crore, while Swiggy has asked to pay a total of Rs 350 crore.
The DGGI initiated the tax demand, asserting that as food delivery is considered a service, Zomato and Swiggy are obligated to pay Goods and Services Tax (GST).
Both online food delivery platforms impose charges on customers under the label of delivery fees.
According to Zomato and Swiggy, the 'delivery charge' is the expense incurred by the delivery partners who deliver food directly from the source to the customer's doorstep.
Companies only collect this cost from customers and transfer it to delivery partners.
However, the GST officials’ opinion on this matter is different.
In 2022, Swiggy and Zomato were directed to collect and remit tax at a 5 percent rate on their orders.
Prior to this, only restaurants registered under GST were responsible for collecting and remitting the tax.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
