Zomato Swingy GST Notice: According to Zomato and Swiggy, ‘delivery charge’ is nothing but the cost borne by the delivery partners who deliver food from door to door.
Zomato Swiggy GST Notice: Online food delivery platforms Zomato and Swiggy have received GST notices worth Rs 500 crore on delivery charges. This information was given in media reports on Wednesday. Both online food delivery platforms charge some money from customers in the name of delivery fees.
According to reports, there are frequent disputes between tax authorities and food delivery apps regarding delivery fees, in which the dispute is around Rs 1000 crore. Zomato declined to comment when contacted. Swiggy also did not comment.
According to Zomato and Swiggy, ‘delivery charge’ is nothing but the cost borne by the delivery partners who go to deliver food from door to door.
Companies simply recover that cost from customers and pass it on to delivery partners. But, according to the report, tax officials do not agree with this.
Last month, Swiggy had increased the platform fee for food orders from Rs 2 to Rs 3. A Swiggy spokesperson told IANS, ‘There is no significant change in the platform fees. Most service providers charge this, and it is a common practice across industries.
In April, the company had implemented a platform fee of Rs 2 per order, independent of the cart value. Zomato also increased its platform fee from the initial Rs 2 to Rs 3 per order in August.
Zomato started charging platform fees from Zomato Gold users, who were exempted earlier.
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