Zomato, Swiggy Hit With ₹500 Cr Tax Bill Over Delivery Fees

Online food delivery giants Zomato and Swiggy are reportedly facing goods and services tax (GST) notices amounting to ₹500 crore each on their delivery charges.

What Happened: The notices are related to an ongoing dispute between tax officials and food delivery apps, involving nearly ₹1000 crore.

Both platforms charge customers under the label of delivery fees, and while Zomato and Swiggy assert that these fees cover the costs borne by delivery partners, while tax officials hold a differing viewpoint.

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Why It Matters: Both Swiggy and Zomato have raised their platform fees from ₹2 to ₹3 per order for food orders. Swiggy said the adjustment was in line with common industry practices.

Notably, Zomato has also begun charging the platform fee from Zomato Gold users, who were previously exempted.

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Posted In: GovernmentRegulationsTechFood DeliverySwiggyZomato