Zomato encountered a nearly 2% drop in its share value on November 23, a day after reports surfaced regarding tax notices issued to food delivery giants Zomato and Swiggy for alleged non-payment. Closing at Rs 116.50 on November 22, Zomato shares found themselves in the red. By 10:58 am the next day, the stock saw a further dip, trading at ₹113.65, down by around 1.43%.
Sources revealed on November 22 that the Directorate General of GST Intelligence (DGGI) issued a GST demand notice to both Zomato and Swiggy. The notice pertains to the alleged non-payment of GST on delivery fees collected from consumers between July 2017 and March 2023. The notice accuses Zomato of owing over Rs 400 crore in GST, while Swiggy is allegedly liable for Rs 350 crore.
Though neither company has officially responded to the notices, insiders suggest that both Zomato and Swiggy are likely to challenge them. The crux of the matter, as per CNBC TV18 sources, revolves around the DGGI’s assertion that the companies should pay GST at a rate of 18% on their service, while the industry contends that Zomato and Swiggy serve as platforms engaging gig workers on a per-delivery basis. The argument is that these platforms merely aggregate fees that are then disbursed to gig workers. Since each gig worker falls below the Rs 20 Lakh threshold, they are deemed exempt from GST, according to the report.
