Zomato, Swiggy get GST demand notices of Rs 750 cr dues from DGGI, says report

The Directorate General of GST Intelligence has issued Goods and Services Tax (GST) demand notices to food aggregators zomato & swiggy, a news report said on Wednesday.

Zomato and Swiggy have received GST notices worth Rs 400 crore and Rs 350 crore, respectively, CNBC TV-18 reported.

The DGGI raised the tax demand as it believes that since food delivery is a service, Zomato and Swiggy are liable to pay GST.

Zomato’s shares closed 1.07 per cent lower at Rs 15.25 apiece on Wednesday.

Both online food delivery platforms charge some money from customers in the name of delivery fees. As per Zomato and Swiggy, ‘delivery charge’ is the cost borne by the delivery partners who go to deliver food from door to door.

Companies simply collect that cost from customers and pass it on to delivery partners. But GST officials differ on this front.

In 2022, Swiggy and Zomato were asked to collect and deposit tax at 5 per cent rate on their orders. Before that, restaurants registered under GST were only collecting and depositing the tax.

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