According to a report published on November 22, Zomato and Swiggy, the country's top two food delivery aggregators, have been scrutinized by tax officials, with notices totaling 750 crore given to them.
The Directorate General of GST Intelligence (DGGI) has issued a Goods and Services Tax (GST) notice of Rs 400 crore to Zomato, which has the largest share of India's online meal delivery business, according to CNBC-TV18, citing sources.
Swiggy has been issued a GST notice in the amount of Rs 350 crore by the DGGI, according to the news channel, citing sources. Both food tech firms did not comment quickly to the news.
According to the article, the DGGI chose to send the tax letters to Zomato and Swiggy because delivery is considered a service. According to the study, the taxation body determined that both companies were obligated to pay GST on it between July 2017 and March 2023.
Zomato, the more publicly traded of the two, published earnings for the fiscal quarter ended September 2023 earlier this month. The company's net profit was 36 crore, compared to a net loss of 251 crore in the same time last year. The revenue from operations increased by 72 percent to 2,848 crore, up from 1,661 crore in the previous year.
Swiggy's CEO, Sriharsha Majety, announced in a blog post in May that the company became profitable in the quarter ended March 2023. Zomato's stock closed at 115.25 per share on the BSE on November 22, down 1.07 percent from the previous day's closing.
