Swiggy & Zomato’s GST Battle Explained

Few days ago, both Zomato and Swiggy received notices for a cumulative GST worth INR 1,000 Cr.

Amounting to INR 500 Cr each, the notice was sent because the tax authorities now view delivery charges collected by these platforms as their revenue.

Both Swiggy and Zomato were asked to pay INR 500 Cr each which is 18% tax levied on total delivery charges since they commenced their businesses.

Executives argue delivery fees go directly to riders, not platform revenue, while the Government contends riders collecting money on platform's behalf constitutes company revenue.

Both Foodtech Majors are planning to approach GST authorities  to explain their stance in response to recent tax notices.

Stay tuned to hear more on this developing story.