Business News: GST Dept. Issues Rs 750 Cr Notice to Zomato and Swiggy

25 Nov, 2023 Author: Ayushee Joshi

GST News: The use of online food delivery platforms has increased at an unprecedented level, with customers getting access to order food from anywhere at any time. Currently, Swiggy and Zomato are leading the food delivery sector. Meanwhile, both the platforms have received notices worth Rs 750 Cr jointly from the GST Department. According to reports, the DGGI has issued a Rs 400 crore GST notice to Zomato, the market leader in India’s online food delivery sector, and a Rs 350 crore GST notice to Swiggy.

GST Notice Regarding Delivery Charges

The government report specifies when and for how long the two companies failed to pay the GST. This notice was received regarding delivery prices, and it was stated that delivery is considered a service that is subject to GST. As a result, the GST will have to be paid from July 2017 until March 2023. None of the two food delivery firms has issued a response regarding the notice till now.