Rs. 400 Cr. GST Notice sent to Zomato, Rs. 350 crore to Swiggy

The country’s top two food delivery aggregators Zomato and Swiggy have reportedly come under the scanner of tax authorities, and have been sent notices worth a combined amount of Rs. 750 crore, according to a report on November 22.

The Directorate General of GST Intelligence (DGGI) has issued a Goods and Services Tax (GST) notice of Rs. 400 crore to Zomato, which has the largest share of India’s food delivery business.

Swiggy has received a GST notice of Rs. 350 from the Directorate General of GST Intelligence (DGGI), according to the news channel, citing sources close to the matter.

Both food delivery businesses did not reply immediately to the report.

According to the report, the DGGI decided to send the tax notices to Zomato and Swiggy because delivery is considered a service. According to the report, the taxation body determined that both companies were obligated to pay GST on it from July 2017 to March 2023.

Zomato, the listed entity of the two, published earnings for the financial quarter that ended September 2023 previously this month. The company’s net profit was Rs. 36 crore, compared to a net loss of Rs. 251 crore at the same time last year. The revenue from operations increased by 72 percent to Rs. 2,848 crore, up from Rs. 1,661 crore in the previous year.

Swiggy’s CEO, Sriharsha Majety, announced in a blog post in May that the company became profitable in the quarter ended March 2023.

Zomato’s stock closed at Rs. 115.25 per share on the BSE on November 22, down 1.07 percent from the previous day’s closing.