Indian food delivery giant Swiggy faces potential GST liability of over INR 300 crore

Major Indian food delivery platform Swiggy is facing a potential goods and services tax (GST) demand of INR 327 crore from tax authorities regarding delivery fee collection. The company is also facing legal notices over allegations of employing child labourers. These legal issues come at an inconvenient time as Swiggy prepares for an initial public offering to raise funds.

Key Highlights:

• The Directorate General of GST Intelligence in Pune issued Swiggy a notice regarding INR 326.7 crore in potential GST dues for the period of July 2020 to March 2022 regarding delivery fees collected from customers.
• Swiggy co-founder and CEO Sriharsha Majety received a notice last year from a Deputy Labour Commissioner in Lucknow over allegations of employing child labourers.
• The food delivery giant is also facing other legal cases and notices regarding various tax and regulatory issues.
• Swiggy reported a net loss of INR 2,350 crore for the fiscal year 2023-24, though operating revenue grew 36% to over INR 11,000 crore.
• The potential legal liabilities and high attrition rates are issues Swiggy must address as it aims for an initial public offering to raise fresh capital.

So in summary, Swiggy is embroiled in significant legal battles just as it looks to launch an IPO, with potential GST dues and allegations around labor practices posing financial and reputational challenges. The company will aim to resolve these matters to improve its position heading into the public markets.