DGGI: 750 crore GST notice to Swiggy and Zomato, accused of not paying tax on delivery charges

The Goods and Services Tax (GST) department has sent a notice of Rs 750 crore to Swiggy and Zomato for earning money in the name of delivery charges from customers and not paying tax on it. In this, a notice of Rs 400 crore has been sent to Zomato and notice of Rs 350 crore has been sent to Swiggy. This amount is between July, 2017 to March, 2023. GST of 18 percent has been imposed on their delivery charges.

However, the companies clarify that the delivery charge is the cost of the delivery partners who go to deliver food from door to door. Companies recover that cost from customers and pass it on to delivery partners. According to sources, tax officials do not agree with this. In 2022, Swiggy and Zomato were ordered to collect five percent GST on all orders. Earlier, only those restaurants had to pay GST, which were registered under this tax bracket.