Pune, 6 April 2025: Swiggy, the company that has made its mark in the world of food delivery and quick commerce, is once again in the headlines. This time the reason is not any new offer or expansion, but the tax demand notice of Rs 7.59 crore received from the Profession Tax Officer of Pune. This notice has been issued for the period from April 2021 to March 2022, in which the company has been accused of violating the rules in deducting profession tax from the salary of its employees. But Swiggy is not taking it lightly and is preparing to fight this matter legally. What is this whole matter, and what will be its effect on the company? Let’s know.

What is at the root of the notice?

The Profession Tax Officer of Pune has sent this notice to Swiggy under the ‘Maharashtra State Tax on Professions, Trades, Callings and Employment Act-1975’. According to this law, companies operating in Maharashtra have to deduct profession tax from the salary of their employees and deposit it to the government. The notice claims that Swiggy did not follow this rule, due to which a tax liability of Rs 7.59 crore arises. This assessment order is for the period of FY22, when Swiggy was expanding its business rapidly.

Ramesh Patil, a local tax consultant from Pune, says, “Profession tax is a small amount, but if it is not deducted or deposited on time, it can become a big penalty. For a big player like Swiggy, this matter is also a question of credibility.”

Swiggy’s response

Swiggy has responded immediately to this notice. The company said in the information given to the stock market, “We have received strong arguments against this order. We are taking all necessary legal steps to challenge it.” Swiggy claims that this tax demand will not have any major impact on its business or financial position. The company also made it clear that it will put its point in this matter through review or appeal. A Swiggy spokesperson said, “Most of our employees work on a partnership model. We follow the rules and will take this notice seriously and respond to it.” This statement shows the confidence that the company has in its legal stand. Notices have come before as well This is not the first time Swiggy has faced a tax notice. Recently, the company received a notice of Rs 158 crore from the Income Tax Department. Apart from this, the GST department also demanded more than Rs 327 crore. All these cases reflect the lack of coordination between Swiggy’s rapidly growing business and complex tax rules. Industry expert Priya Sharma says, “Online platforms like Swiggy and Zomato are increasingly being monitored by tax regulations. This is a challenge for the digital economy, but it also gives companies an opportunity to strengthen their systems.”

Swiggy’s business and future

Swiggy is not limited to just food delivery today. The company has also strengthened its presence in the quick commerce and snacks segment through Instamart. After being listed on the stock market in November last year, Swiggy is eyeing competition from competitors like BlinkIt and Zepto. Celebrity investors like Sachin Tendulkar and Madhuri Dixit have also taken stake in the company, which reflects its brand value.

But this series of tax notices can create concern among investors. A market analyst said on the condition of anonymity, “Swiggy’s stock is currently under pressure. Such notices may affect sentiment in the short term, but will not affect the company’s growth in the long run.”

What will be the impact on the common man?

This news does not bring any direct change for Swiggy’s delivery partners and consumers. Sanjay Verma, a delivery partner from Pune, says, “We are concerned about our earnings. Whatever problem the company has, it will resolve it.” At the same time, customers hope that this tax dispute will not affect the delivery charges or service quality.

What next?

Swiggy is now preparing to appeal against this notice. If the company is able to prove its arguments, then this case can go in its favor. But if this does not happen, then it may have to pay this amount. This case can be a lesson not only for Swiggy but for the entire quick commerce sector about how important it is to follow tax rules.

Will Swiggy be able to overcome this challenge? The answer to this will be found in the coming days. But it is certain that this startup is not going to stop on its path.