{"id":1276207,"date":"2023-11-24T08:24:48","date_gmt":"2023-11-24T02:54:48","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1276207"},"modified":"2023-11-24T08:25:21","modified_gmt":"2023-11-24T02:55:21","slug":"big-setback-for-online-food-apps-govt-considers-delivery-as-revenues-demands-rs-1000-crore-tax-from-swiggy-zomato","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/big-setback-for-online-food-apps-govt-considers-delivery-as-revenues-demands-rs-1000-crore-tax-from-swiggy-zomato\/","title":{"rendered":"Big Setback For Online Food Apps: Govt Considers Delivery As Revenues, Demands Rs 1000 Crore Tax From Swiggy, Zomato"},"content":{"rendered":"\n<p>As per a recent <a href=\"https:\/\/www.gadgetsnow.com\/tech-news\/zomato-swiggy-slapped-with-rs-1000-crore-tax-notice-all-details\/amp_articleshow\/105420828.cms#amp_tf=From%20%251%24s&amp;aoh=17006984181686&amp;referrer=https%3A%2F%2Fwww.google.com\">report<\/a>, online food delivery platforms Zomato and Swiggy have received goods and services tax (GST) notices worth Rs 500 crore each.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"465\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/11\/Mobile-Apps-Banner-Opt-1.jpg\" alt=\"Big Setback For Online Food Apps: Govt Considers Delivery As Revenues, Demands Rs 1000 Crore Tax From Swiggy, Zomato\" class=\"wp-image-1276223\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/11\/Mobile-Apps-Banner-Opt-1.jpg 1000w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/11\/Mobile-Apps-Banner-Opt-1-300x140.jpg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/11\/Mobile-Apps-Banner-Opt-1-768x357.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<p><strong>I-T Department Released Tax Notice For Zomato and Swiggy&nbsp;<\/strong><\/p>\n\n\n\n<p>The notice seems to be related to the \u2018delivery charge\u2019 that both of these online food delivery platforms have been charging from its customers.<\/p>\n\n\n\n<p>In their defense, the companies said that the \u2018delivery charge\u2019 is the cost borne by the riders who bring food to customers and they collect that cost from customers and pass it to riders.&nbsp;<\/p>\n\n\n\n<p>But it appears that the tax authorities aren\u2019t convinced, as per the media report.<\/p>\n\n\n\n<p>The tax authorities believe that Swiggy and Zomato collect this delivery charge which gets added into their revenue.<\/p>\n\n\n\n<p>So, the food aggregators must pay tax for that.<\/p>\n\n\n\n<p>Although a senior executive said that the delivery charge goes directly to the rider in the report.<\/p>\n\n\n\n<p>Further adding, \u201cOurs is a platform that brings the rider and the customer close to each other. The delivery fee is not our revenue, instead, it goes directly to the rider. This is an interpretation of guidelines, and we have a clear go-ahead from the tax consultants.\u201d&nbsp;<\/p>\n\n\n\n<p>While requesting anonymity, the senior executive said, \u201cWe continue to stress upon the fact that riders are not our employees but contractors. However, in this case, the government is trying to say that the money the riders are collecting is being done on our behalf; therefore, this constitutes our revenue.\u201d<\/p>\n\n\n\n<p><strong>Increase In Fees By Online Delivery Platforms<\/strong><\/p>\n\n\n\n<p>In the meantime, Swiggy had increased the platform fee from Rs 2, introduced in April, to Rs 3 for food orders from last month.<\/p>\n\n\n\n<p>Following the footprint, Zomato is also increasing its platform fee to Rs 3 per order from an initial Rs 2.&nbsp;<\/p>\n\n\n\n<p>Besides this, Zomato has also started to charge platform fees from Zomato Gold users, who were previously exempted.<\/p>\n\n\n\n<p>Talking about the same, a Swiggy spokesperson said that \u201cthere has been no significant change on platform fee, which is applied by most service players and is a common practice across industries\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As per a recent report, online food delivery platforms Zomato and Swiggy have received goods and services tax (GST) notices worth Rs 500 crore each.&nbsp; I-T Department Released Tax Notice For Zomato and Swiggy&nbsp; The notice seems to be related to the \u2018delivery charge\u2019 that both of these online food delivery platforms have been charging [&hellip;]<\/p>\n","protected":false},"author":27,"featured_media":1276223,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1994,179,671],"class_list":["post-1276207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-online-food","tag-swiggy","tag-zomato"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Big Setback For Online Food Apps: Govt Considers Delivery As Revenues, Demands Rs 1000 Crore Tax From Swiggy, Zomato - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/big-setback-for-online-food-apps-govt-considers-delivery-as-revenues-demands-rs-1000-crore-tax-from-swiggy-zomato\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Big Setback For Online Food Apps: Govt Considers Delivery As Revenues, Demands Rs 1000 Crore Tax From Swiggy, Zomato - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"As per a recent report, online food delivery platforms Zomato and Swiggy have received goods and services tax (GST) notices worth Rs 500 crore each.&nbsp; I-T Department Released Tax Notice For Zomato and Swiggy&nbsp; The notice seems to be related to the \u2018delivery charge\u2019 that both of these online food delivery platforms have been charging [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trak.in\/stories\/big-setback-for-online-food-apps-govt-considers-delivery-as-revenues-demands-rs-1000-crore-tax-from-swiggy-zomato\/\" \/>\n<meta property=\"og:site_name\" content=\"Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-24T02:54:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-24T02:55:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/11\/Mobile-Apps-Banner-Opt-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"465\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sheetal Bhalerao\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sheetal Bhalerao\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/trak.in\/stories\/big-setback-for-online-food-apps-govt-considers-delivery-as-revenues-demands-rs-1000-crore-tax-from-swiggy-zomato\/\",\"url\":\"https:\/\/trak.in\/stories\/big-setback-for-online-food-apps-govt-considers-delivery-as-revenues-demands-rs-1000-crore-tax-from-swiggy-zomato\/\",\"name\":\"Big Setback For Online Food Apps: Govt Considers Delivery As Revenues, Demands Rs 1000 Crore Tax From Swiggy, Zomato - Trak.in - Indian Business of Tech, Mobile &amp; 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