- The tax landscape has changed since the introduction of GST in 2017.
- Food aggregators like Swiggy and Zomato have faced multiple changes in their taxability.
- The DGGI has issued GST demand notices to Swiggy and Zomato for unpaid dues on online delivery fees.
- The taxability of delivery charges collected by food aggregators is under scrutiny.
- The DGGI is demanding GST on delivery charges, while the food aggregators argue that they are just intermediaries.
- The food aggregators categorize delivery charges based on their revenue recognition policies.
- Delivery charges are recorded as expenses when the food aggregator is only a technology platform provider.
- Delivery fees received from end users are recognized as revenue when the food aggregator is responsible for delivery.
Source: sandalawoffices.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
