Swiggy Faces Major Tax Demands Amid Revenue Growth

• Swiggy's shares will be in focus after receiving an assessment order from the Income Tax Department for unpaid dues of Rs 158.25 crore.
• The tax demand pertains to fiscal year 2022, involving cancellation charges paid to merchants and interest income from tax refunds.
• Swiggy maintains it has strong grounds to challenge the order and is actively appealing the decision.
• The company also faces unpaid GST notices amounting to over Rs 327 crore, with similar issues flagged for rival Zomato.
• Despite these challenges, Swiggy reported a 31% YoY increase in operating revenue for October-December 2024, though net losses widened due to investments in quick commerce.

Source: News 18, The Economic Times