Tax Troubles: Zomato Hit with Rs. 400 Crore GST Notice, Swiggy at Rs. 350 Crore

• GST Notices Issued:

- Zomato and Swiggy, India's top food delivery aggregators, are reportedly under scrutiny by tax authorities.

- Notices totaling Rs. 750 crore have been issued, with Zomato receiving Rs. 400 crore and Swiggy Rs. 350 crore.

• Issuing Authority:

- The Directorate General of GST Intelligence (DGGI) is responsible for issuing the Goods and Services Tax (GST) notices.

• Reasons for Notices:

- The tax notices are related to the classification of food delivery as a service.

- DGGI has determined that both Zomato and Swiggy are obligated to pay GST on their services from July 2017 to March 2023.

• Companies' Response:

- Zomato and Swiggy have not immediately responded to the reported GST notices.

• Financial Performance:

- Zomato, a listed entity, recently reported its financials for the quarter ending September 2023.

- Zomato's net profit for the quarter was Rs. 36 crore, a significant improvement from a net loss of Rs. 251 crore in the same period the previous year.

- The revenue from operations increased by 72 percent to Rs. 2,848 crore.

• Swiggy's Profitability:

- Swiggy's CEO, Sriharsha Majety, announced the company's profitability in the quarter ending March 2023 in a blog post in May.

• Stock Performance:

- Zomato's stock closed at Rs. 115.25 per share on the BSE on November 22, showing a 1.07 percent decrease from the previous day's closing. Source : https://studycafe.in/rs-400-cr-gst-notice-sent-to-zomato-rs-350-crore-to-swiggy-270036.html