Swiggy to appeal Rs 158 crore tax bill

Quick commerce business Swiggy has been sent a bill by the Income Tax Department for unpaid dues totalling Rs 158.25 crore, accrued during the 2022 financial year. The business plans to appeal the order and has made a filing on the exchanges. 

“The company believes that it has strong arguments against the order and is taking necessary steps to protect its interest through review/ appeal,” said Swiggy in a statement, ET Tech reported. “The company believes that the order has no major adverse impact on its financials and operations.”

During the 2022 fiscal year, Swiggy did not pay tax on cancellation charges which were paid to merchants and the interest income on income tax refunds, ET Retail reported. When the Bengaluru based business appeals its 2022 tax charges, it also plans to appeal the Rs 1.1 crore unpaid dues accrued during the 2018 and 2019 financial years for cancellation charges paid to merchants during that time.

Along with income tax notices, Swiggy has also been flagged for alleged unpaid Goods and Services Tax dues totalling more than Rs 327 crore. The GST fees were based on delivery fees charged to users by the platform. However, Swiggy has argued that these fees get fully passed on to gig workers.