DGGI served notices on Zomato and Swiggy totaling Rs.750 crores: Find out why

According to a report published on November 22, Zomato and Swiggy, the country's top two food delivery aggregators, have been scrutinized by tax authorities, with notices totaling 750 crores sent to them.

The Directorate General of GST Intelligence (DGGI) has issued a Goods and Services Tax (GST) notice of Rs 400 crore to Zomato, which has the largest share of India's online food delivery market, according to CNBC-TV18, citing sources.

Swiggy was sent a GST notice of 350 by the DGGI, according to the news channel, citing sources close to the situation.

The report claims that because the DGGI views delivery as a service, it chose to send tax notices to Zomato and Swiggy. According to the report, the taxation body determined that both businesses were responsible for paying the GST on it for July 2017 through March 2023.

Zomato turned from loss making to profit-making in a year

Earlier this month, Zomato, the listed company out of the two, released its earnings for the quarter that ended in September 2023. In comparison to a net loss of Rs.251 crore during the same period previous year, the company's net profit was Rs. 36 crore.

Zomato's shares closed at Rs.115.25 per share on the BSE during the trading session on November 22, 1.07 percent lower than the closing price of the day before.

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The CEO of the unlisted Swiggy, Sriharsha Majety, said in a May blog post that the business turned a profit in the quarter that ended in March 2023.

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