Swiggy faces Rs 158 Cr tax demand over alleged discrepancies; co plans to repeal

The Income Tax Department has issued a tax demand of Rs 158.25 crore to food delivery platform Swiggy for the assessment year 2021-22.

The order, raised by the Deputy Commissioner of Income-tax, Central Circle – 1(1), Bengaluru, points to alleged discrepancies involving cancellation charges paid to merchants and interest income on tax refunds.

In response, Swiggy has expressed strong disagreement with the assessment and announced plans to contest the order before the relevant authority. The company, in its regulatory filing with the Bombay Stock Exchange and National Stock Exchange, stated that it believes it has a solid case and is undertaking all necessary measures to safeguard its position.

Despite the tax claim, Swiggy has assured stakeholders that the development will not have a major impact on its financial stability or business operations.

Swiggy's shares ended at Rs 331 on the BSE, reflecting a 0.50% gain prior to this announcement on Tuesday.

As Swiggy prepares to challenge the tax order, the case adds to the ongoing scrutiny of major digital service platforms in India’s regulatory landscape.

In recent months, the Income Tax Department of India has intensified its scrutiny of both domestic and foreign companies, resulting in significant tax demands across various sectors.

Global technology giant Samsung Electronics faced a $601 million tax demand in March 2025 for allegedly misclassifying imported telecom equipment to avail lower tariffs. Similarly, German auto maker Volkswagen has been hit with a $1.4 billion tax bill over claims that its Indian unit mislabelled imports, a demand the automaker is currently contesting in the Bombay High Court. 

Car maker Kia has also come under scrutiny, with authorities accusing the company of misclassifying imported components used in its Carnival minivans, leading to a $155 million tax charge. While manufacturing giant Bosch received a tax notice exceeding Rs 20 crore for the assessment year 2022-23.