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Tax troubles: Swiggy and Zomato grapple with freshly served GST notice on delivery fee
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Tax troubles: Swiggy and Zomato grapple with freshly served GST notice on delivery fee

By Andrew McCollum

Illustration by Muhabit ul haq via AI.

Synopsis

Zomato and Swiggy have received GST notices worth INR500 crore each on delivery charges. While the food aggregators maintain that the fee collected is not their revenue and goes to the riders, tax authorities aren’t convinced. If the tax is applied, it will create a hole in the food-delivery companies’ pockets.

Whose money is it and who will pay taxes for it? Taxmen and food delivery platforms tussle over this question all the time. Food aggregators Zomato and Swiggy maintain that the ‘delivery charge’ is nothing but the cost borne by the riders who bring food packs to each doorstep — the companies just collect that cost from customers and pass it to riders. But, as per sources, taxmen aren’t convinced. At stake is around INR,1000 crore. According to

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Andrew McCollum 109721 posts 0 comments