Two of the leading food delivery giants, Zomato and Swiggy, have received Goods and Services Tax (GST) demand notices from the Directorate General of GST Intelligence (DGGI). Zomato, which holds the largest market share in India’s online food delivery industry, is reported to have received a substantial GST notice of ₹400 crore, while Swiggy has also been served a GST notice amounting to ₹350 crore by the Directorate General of GST Intelligence.
Both companies are liable to pay GST on their services for the period from July 2017 to March 2023.
The Directorate General of GST Intelligence has served these two notices amounting to Rs. 750 crore on the classification that food delivery is a service, making Zomato and Swiggy subject to GST obligations for the period July 2017 to March 2023.
This is not the first instance wherein DGGI has served notices to companies. Earlier, Dream 11, the gaming firm, was served notice for a whopping Rs. 55,000 crore, while PlayGames 24*7 and Head Digital Works were served notices for Rs. 25,000 crore. Even insurance firms such as HDFC Bank and PolicyBazaar have been served show-cause notices.
As this story unfolds, it will undoubtedly shape discussions around tax compliance in the digital service industry and may pave the way for further clarifications and regulations. Meanwhile, CaptainBiz, the All-in-One GST Billing Software ensures there is absolute GST compliance, ensuring every invoice is organized, payments are received on time, inventory is under control, costs are reduced, and businesses grow smoothly.
After all, in the world of business, having CaptainBiz on your side might just be the superpower you need!
