Food Delivery giants Zomato & Swiggy receive GST demand notices from DGGI

23 Nov 2023 , 09:30 AM

According to sources, the Directorate General of GST Intelligence has sent a GST demand notice to Zomato and Swiggy.

The report highlighted that the estimated GST demand from Zomato is more than Rs 400 crore. While the DGGI has demanded over Rs 350 crore from Swiggy. The demand is said to have been calculated for the period from July 2017 to March 2023.

DGGI has stated that since Food Delivery is a service, Zomato & Swiggy are liable to pay GST on such service.

Zomato & Swiggy are India’s famous on-demand meal delivery app that helps customers discover new restaurants and have them delivered to their door. These apps offer something for everyone.

Swiggy, on the other hand, also added new verticals to its food delivery app such as Swiggy Mart which deliver grocery within a few minutes. Apart from that, it also operates Swiggy Genie which allows the users to transfer any of their own products, necessary documents, etc., within a short span of time from one door to another.

By the end of 2025, the online meal delivery business is predicted to grow at a 15.4% annual rate.

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