Sunday, February 25th, 2024

Big blow to Zomato and Swiggy, got GST notice of Rs 750 crore: Report

Photo:FILE Zomato and Swiggy

The country’s big food delivery companies Zomato and Swiggy have jointly received GST notices worth Rs 750 crore. The reason behind this notice is believed to be tax scrutiny, due to which the GST department has served notices to both the companies.

CNBC TV18 report quoted sources as saying that both the companies have been given separate notices by the GST department. Zomato, which has the largest share in the food delivery market, has been given a GST notice of more than Rs 400 crore by the Directorate General of GST Intelligence (DGGI).

At the same time, Swiggy has been served a GST notice of more than Rs 350 crore by DGGI. However, no response has been given by both the companies.

Received notice regarding delivery fees

According to the information given in the report, this notice was sent by the GST department regarding delivery fees. The government agency says that delivery is a service. Because of this, both the companies will have to pay tax on it. This notice is for the tax period from July 2017 to March 2023. At present, no response has been given by both the companies regarding this.

Let us tell you, Zomato and Swiggy are food delivery companies. Zomato is a listed company. Its shares had closed at Rs 115.25 with a decline of one per cent in Wednesday’s session. In September, Zomato had registered a profit of Rs 36 crore. During this period the company had registered a revenue of Rs 2,848 crore. Whereas, Swiggy is an unlisted company. In a blog post made by Sriharsha in May, it was said that the company has become profitable in the March quarter of 2023.

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