Swiggy, Indigo under scanner for GST evasion

What do Swiggy Foods,  IAS coaching  centres, Indian School of Business (ISB), IndiGo airline and big convention centres in Hyderabad have in common? 

Published: 20th June 2018 02:26 AM  |   Last Updated: 20th June 2018 06:02 AM   |  A+A-

Express News Service

BENGALURU: What do Swiggy Foods,  IAS coaching centres, Indian School of Business (ISB), IndiGo airline and big convention centres in Hyderabad have in common? While some of them are evading Goods and Services Tax (GST),  some others are not paying the tax properly.

Hence, all these firms and establishments are now on the radar of the Commercial Taxes department. The Commercial Taxes officials, to get their revenue, have started tightening the noose around several big firms in the state capital.

As part of this, the officials recently directed the Swiggy Foods to pay GST as per their business. The Swiggy Foods has tie-up with 4,000 eateries in the city and only 2,000 of them are registered. “We are not getting GST of 5 per cent on food items sold from the unregistered 2,000 outlets. Besides, the registered 2,000 outlets too are not paying taxes properly,” the officials told Express.

Now, Commercial Taxes officials are registering all the 2,000 unregistered outlets of Swiggy on suo motu basis. It was also found that Swiggy is not mentioning the amount on the bills.

“We have observed that Swiggy supplies 40,000 food packets daily. On an average, each packet costs around `250. It means that the GST revenue to the government should be around `5 lakh a day on the `1 crore business Swiggy makes. When we cracked the whip, Swiggy has fallen in line,” the official said.
The ISB has also come under the watch of the Commercial Taxes department for evasion of GST.  The ISB conducts several programmes and events.

“If any person or organisation from other states organises an event here, they have to pay GST here. We have directed them to pay the tax,” a top official said.Airlines like IndiGo and Jet Airways   collect extra money from passengers for allotting spacious seats. Sometimes, they levy penalty for extra baggage but are not paying GST on these items, sources said.

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