Swiggy, Zomato Get GST Demand Notices Of Rs 750 Crore From DGGI: Report

India’s top two food delivery aggregators, Swiggy and Zomato, have reportedly come under the lens of taxmen, citing sources privy to the development, CNBC-TV18 reported on Wednesday. According to the report, the two online delivery platforms have been served with notices with a combined value of Rs 750 crore.

Zomato, which has a biggest share in the country’s online food delivery market, has been served a Goods and Services Tax (GST) notice of Rs 400 crore by the Directorate General of GST Intelligence (DGGI), as per CNBC-TV18 report. On the other hand, Swiggy received a GST notice of Rs 350 crore by the tax authority, the news channel said.

Swiggy and Zomato, however, did not immediately respond to the development. ABP Live also could not independently verify the news.

The DGGI decided to send the GST notices to the aggregators as it considers delivery as a service. The tax body found both the firms liable to pay the GST on it for the period stretching between July 2017 and March 2023, the report mentioned.

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Zomato, which is the listed entity, had clocked its earnings for the quarter ended September 2023 earlier this month. The online delivery platform posted a net profit of Rs 36 crore, against a net loss of Rs 251 crore in the corresponding period last year. Its revenue from operations jumped to Rs 2,848 crore, logging growth of 72 per cent, compared to Rs 1,661 crore in the year-ago period. According to a regulatory filing, the company’s total expenses were Rs 3,039 crore in Q2. In the year-ago quarter, it stood at Rs 2,092 crore.

Meanwhile, Swiggy’s CEO, Sriharsha Majety, in a blog post in May had said that the company turned profitable in the quarter ended March 2023. Swiggy is an unlisted firm.

Shares of Zomato closed at Rs 115.25 apiece, down 1.07 per cent, on the BSE on Wednesday.