Zomato and Swiggy receive GST notices totaling Rs. 750 crore

The Directorate General of GST Intelligence (DGGI) has slapped food delivery giants Zomato and Swiggy with Goods and Services Tax (GST) demand notices, amounting to Rs. 400 crore and Rs. 350 crore, respectively. This move stems from the DGGI's belief that food delivery is a service, making both companies liable for GST payments. This development follows a 2022 directive requiring Zomato and Swiggy to collect and deposit a 5% tax on their orders, a responsibility previously held by GST-registered restaurants.