Swiggy Faces New Tax Trouble, Gets Rs 7.6 Cr Professional Tax Notice from Maharashtra

Online food delivery start-up Swiggy has received a tax demand notice of Rs 7.59 crore from the Maharashtra government for an alleged violation of professional tax deductions, the company said in its exchange filing on Saturday. The charges have been levied by the Office of the Professional Tax Officer of Pune.

“On April 04, 2025, the Company received an assessment order for the period April 01, 2021, to March 31, 2022, for an amount of Rs 7,59,86,813. Violation of provisions pertaining to deduction of Profession Tax from the employees salary, under the Maharashtra State Tax on Professions, Trades, Callings & Employments Act, 1975 has been alleged against the Company,” the NSE filing read.

Responding to the notice, Swiggy said the food delivery platform has plans to appeal against the authorities as the company has strong arguments against the tax demand order.

“The Company believes that it has strong arguments against the Order and is taking necessary steps to protect its interest through review/appeal,” the filing added.

Previous Tax Orders

This is not the first time that Swiggy has received a tax demand order. On April 2, the Income Tax Department has also ordered Swiggy to pay Rs 158 crore in additional tax for alleged contraventions. The allegations include paying cancellation fees to merchants and not taxing the interest revenue on income tax refunds.

Swiggy stated that it is taking the necessary steps to defend its interests. According to a company statement, it believes it has strong arguments against the order and is pursuing review and appeal processes. The foodtech start‑up also maintains that the demand notice will not have a significant impact on its financial performance or operations.

Prior to this, Swiggy received an income tax demand notice of Rs 99 lakh from the Income Tax Department's TDS Circle in Bengaluru for the period of April 2017 to March 2018. In 2023 also, the GST department issued a demand notice of Rs 326.7 crore against the Sriharsha Majety‑led corporation for the period between July 2020 and March 2022. The corporation has since filed an appeal against the GST notice.