Selling on Swiggy,Zomato? Here’s Why You’ll Soon Get a GST Notice!

Food delivery partners and cloud kitchens are suddenly finding themselves in trouble—and many didn’t even know they had to register for GST.

What’s the Controversy?

Since 2022, online food delivery platforms like Swiggy and Zomato are required to collect GST on behalf of the restaurants they list. But here’s the twist in 2025:

• Small restaurants and home-based kitchens making over ₹20 lakh annually are getting GST show-cause notices for not registering.
• Even if Swiggy/Zomato collected and paid the tax, authorities are asking sellers to register and file GSTR-1 & GSTR-3B.

Why This Is Problematic

• Most small food businesses assumed that Swiggy/Zomato’s GST compliance covered them.
• Many of them don’t maintain formal books and are now facing penalties and late fees.
• States like Karnataka and Maharashtra are aggressively pursuing this compliance gap.

What the Law Says:

• Under Section 24(ix) of the CGST Act, any person who supplies through e-commerce is required to register, regardless of turnover.
• Swiggy/Zomato collect GST at 5% from the customer, but the seller is still expected to file NIL returns if turnover is below the threshold.

What You Should Do:

1. Check your annual Swiggy/Zomato payout. If it’s over ₹20 lakh, registration is mandatory.
2. File pending GSTR returns, even if Swiggy/Zomato has paid the GST. Avoid interest and late fees.
3. Apply for GST registration through the GST Portal (www.gst.gov.in).