Swiggy Faces Rs 158 Crore Tax Demand Over Cancellation Fees and Refund Interest

Food delivery platform Swiggy on Tuesday received an additional tax demand of Rs 158 crore from the Income Tax Department for alleged contraventions, according to an exchange filing. The allegations include paying cancellation fees to merchants and not taxing the interest revenue on income tax refunds.

“The Company has received an assessment order for the period April 2021 to March 2022 where an addition of Rs 158,25,80,987 has been made. The Company believes that it has strong arguments against the Order and is taking necessary steps to protect its interest through review/appeal,” Swiggy said in a regulatory filing.

The additional demand notice was issued by the Central Circle of the Income Tax Department's Bangalore office and covers the period from April 2021 to March 2022.

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.

This is not the first time Swiggy has faced a tax notice. Recently, 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.

Also Read: Is India’s March Marathon in Trade Talks A Response to Donald Trump’s Reciprocal Tariffs?

Swiggy Instamart Expansion

This comes after recently, Swiggy Instamart revealed that it has expanded its reach to 100 cities across India in response to the growing demand for 10‑minute deliveries, particularly in tier II and III cities.

With this expansion, millions of new customers now have access to over 30,000 products, from groceries and daily essentials to electronics, smartphones, fashion, makeup, toys and more, all delivered in 10 minutes, Swiggy Instamart said in a statement.