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 largest share in India’s online food delivery market, has received a Goods and Services Tax (GST) notice. ₹400 crore from the Directorate General of GST Intelligence (DGGI), CNBC-TV18 reported, citing sources.
Swiggy has been sent a GST notice on ₹350 of the DGGI, the news channel further reported, citing people who are knowledgeable about the development.
Both the food technology companies did not immediately respond to the news.
According to the report, the DGGI has decided to send the tax notifications to Zomato and Swiggy as it considers delivery as a service. The tax body found both companies liable to pay the GST on it for the period spanning between July 2017 and March 2023, the report said.
Livemint could not independently control the development.
Zomato, which is the listed entity between the two, reported its earnings for the quarter ended September 2023 earlier this month. The company’s net profit came in at ₹36 crores, against a net loss of ₹251 crore in the corresponding period last year. The income 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 had become 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 from the previous day’s close.
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Updated: 22 Nov 2023, 17:33 IST
(tagsTo Translate)Zomato