Zomato and Swiggy, the country’s top two food delivery aggregators, have reportedly come under the scrutiny of tax authorities, with notices of a combined value of ₹750 crore sent to them, a report said on November 22.
Zomato, which has the biggest share in India’s online food delivery market, has been issued a Goods and Services Tax (GST) notice of ₹400 crore by the Directorate General of GST Intelligence (DGGI), CNBC-TV18 reported, citing sources.
Swiggy has been sent a GST notice of ₹350 by the DGGI, the news channel further reported, citing persons who are privy to the development.
Both the foodtech companies did not immediately respond to the news.
Also Read: Swiggy IPO planned in 2024, investment bankers picked: Report
As per the report, the DGGI decided to send the tax notices to Zomato and Swiggy as it considers delivery as a service. The taxation body found both the companies liable to pay the GST on it for the period stretching between July 2017 and March 2023, the report said.
Livemint could not independently verify the development.
Zomato, which is the listed entity between the two, had reported its earnings for the quarter ended September 2023 earlier this month. The company’s net profit came in at ₹36 crore, against a net loss of ₹251 crore in the corresponding period last year. The revenue from operations jumped to ₹2,848 crore, registering a growth of 72 percent, compared to ₹1,661 crore in the year-ago period.
Sriharsha Majety, the CEO of the unlisted Swiggy, stated in a blog post in May that the company turned profitable in the quarter ended March 2023.
In the trading session on November 22, Zomato’s scrip settled at ₹115.25 apiece on the BSE, down 1.07 percent as against the previous day’s close.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
