Both online <keyword id="6376068" type="General" weightage="20" keywordseo="Food-Delivery" source="Orion">food delivery</keyword> platforms charge some money from customers in the name of delivery fees. There is often a dispute between tax officers and food delivery apps regarding the delivery fee, which involves nearly Rs 1000 crore, according to the reports. When reached for a comment, <keyword id="830092" type="General" weightage="20" keywordseo="Zomato" source="Orion">Zomato</keyword> refused. <keyword id="6358977" type="General" weightage="20" keywordseo="Swiggy" source="Orion">Swiggy</keyword> did not comment either. As per Zomato and Swiggy, 'delivery charge' is nothing but the cost borne by the delivery partners who go to deliver food from door to door. Companies simply collect that cost from customers and pass it on to delivery partners. But, tax officials do not agree with this, as per the reports. Last month, Swiggy increased the platform fee from Rs 2 to Rs 3 for food orders. A Swiggy spokesperson told IANS, that "there has been no significant change on platform fee, which is applied by most service players and is a common practice across industries". In April, the company introduced a platform fee of Rs 2 per order, irrespective of the cart value. In August, Zomato also increased its platform fee to Rs 3 per order from an initial Rs 2. Zomato started charging the platform fee from Zomato Gold users, who were previously exempted.

Zomato, Swiggy slapped with Rs 500 crore GST each: Report

New Delhi, <keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword> shares were trading more than 4 per cent down on Thursday morning after it received Rs 400 crore show-cause notice from the goods and services tax (GST) authorities over unpaid dues collected as "delivery charges". The Directorate General of GST Intelligence (DGGI) last month issued a demand notice to Zomato and its rival <keyword id="19896956" type="General" weightage="80" keywordseo="swiggy" source="keywords">Swiggy</keyword>, asking them to pay pending dues of over Rs 400 crore and Rs 350 crore, respectively. The show-cause notice to Zomato is for the period between October 29, 2019, and March 31, 2022, according to media reports. The food delivery platform said that it "strongly believes that it is not liable to pay any tax since the delivery charge is collected by the company on behalf of the delivery partners". In a regulatory filing, Zomato said that in view of the contractual terms and conditions mutually agreed upon, "the delivery partners have provided the delivery services to the customers and not the company". "The company will be filing an appropriate response to the show cause notice (SCN)," Zomato added. "At this stage, no order of any kind has been passed and as mentioned above, the company believes that it has a strong case on merit," said the company. Last month, Zomato and Swiggy received GST notices on delivery charges. As per Zomato and Swiggy, 'delivery charge' is nothing but the cost borne by the delivery partners who go to deliver food from door to door. Swiggy recently increased the platform fee from Rs 2 to Rs 3 for food orders. A Swiggy spokesperson had told IANS that "there has been no significant change on platform fee, which is applied by most service players and is a common practice across industries". Zomato earlier increased its platform fee to Rs 3 per order from an initial Rs 2.

Zomato stock down after Rs 400 cr show-cause notice for GST dues

<ul><li><keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword> and <keyword id="6358977" type="General" weightage="20" keywordseo="swiggy" source="Orion">Swiggy</keyword> will be liable to collect <keyword id="6354679" type="General" weightage="20" keywordseo="gst" source="Orion">GST</keyword> on online orders of food, instead of restaurants.</li><li>We don’t tax platforms like Amazon because we understand that they are marketplaces, why such difference with food aggregators, asks EY’s Bipin Sapra.</li><li>The tax loss to the government due to alleged under-reporting by food delivery aggregators is ₹2,000 crore over the past two years.</li></ul>India’s Finance Minister Nirmala Sitharaman on Friday announced that online food delivery platforms like Zomato and Swiggy will be the ones collecting goods and services tax (GST) from customers. The tax rate stays consistent at 5% and the ruling comes into effect on January 1, 2022. Earlier, it was the responsibility of the restaurants to do the same. It did seem pretty fair though, given that restaurants were the ones actually serving the customers while these new age platforms only facilitated online ordering. But it is what it is and the tax experts are not too impressed with it. The partners of renowned law and consultancy firms agreed that taxing platforms like Zomato and Swiggy was not the right way to go about this. “Are we asking Amazon and others to pay the tax? No, because we understand that separate from where there is a buy and sell,” EY’s Bipin Sapra said, adding that food delivery platforms work in a similar manner. But before we form an opinion about it, it is important to understand what this hullabaloo is all about. ‘It’s transfer of responsibility, not an add on tax.’ A customer pays a GST of 5% on each order they place, whether for dine-in or at-home delivery. The restaurants collect this GST because it is the one providing the services/product to the customers directly. The Indian government has now decided that restaurants would not be the ones collecting the taxes on online orders accepted through apps like Zomato and Swiggy. Instead, these food aggregator businesses will be the ones doing so. “They've actually said that these electronic commerce operators would be paying the tax on behalf of restaurants that are supplying customers through their platform. It is like a transfer of responsibility. The restaurant is not required to pay that, but yes they will continue to pay the tax for the offline sales,” PwC’s Anita Rastogi said in an exclusive interaction with Business Insider. Therefore, it doesn't really have much of an implication on customers in many cases as the GST rate stays the same. In some, it does. ‘I already pay GST on order, why do I care who collects it?’ While the government of India is yet to issue further clarification on the new GST norms for Zomato and Swiggy, the current facts have actually made the platforms quite redundant. If restaurants are not supposed to collect GST on online orders, does this mean that placing an order directly from the restaurants will be cheaper than placing it through these platforms? “If I order from a dhaba [roadside restaurant] next door and there is a 5% tax that Zomato charges, but if I call him directly, I don't have to pay 5% tax... Then that brings in inefficiencies and then takes away the whole purpose of having these platforms who are pushing the smaller players to reach a bigger audience,” Chilana &amp; Chilana Law Office’s Sandeep Chilana said. Even the tax experts or the platforms themselves are not too sure about how the government plans to play it out. Both Zomato and Swiggy have <a href="https://economictimes.indiatimes.com/tech/startups/swiggy-zomato-reach-out-to-govt-for-clarity-on-gst/articleshow/86439373.cms" data-type="tilCustomLink">reportedly</a> reached out to the government, seeking more details on the GST being levied on them. They are worried that this could lead to tax cascading (tax on tax). Abhishek Rastogi, partner at Khaitan &amp; Co, also raised similar concerns. There is one thing for sure — you will have more tax on your plate now. Earlier, restaurants below certain thresholds were exempted from paying GST on online or dine-in orders. Thanks to the new policies, even those restaurants would be under the tax next and ordering from your nearest dhaba will get more expensive. ‘This is precisely why the government took this up’ Despite the increase in online ordering, the government of India has not been able to fill up its treasury at the same rate. “These restaurants were required to take the GST and pay the tax to the government, but somewhere down the line — through technology, artificial intelligence, etc — many of the restaurants are not paying this particular tax to the government,” Rastogi said. As per the <a href="https://www.business-standard.com/article/economy-policy/5-gst-on-food-delivery-apps-fuel-to-stay-out-of-ambit-key-decisions-121091701376_1.html">estimates</a>, the tax loss to government due to alleged under-reporting by food delivery aggregators is ₹2,000 crore over the past two years. ‘But is there any way out?’ “The simplest solution which can be implemented as soon as possible was tax collected at source (TCS),” Rastogi added. Tax collected at source (TCS) is the tax payable by a seller, which he collects from the buyer at the time of sale. Platforms like Zomato and Swiggy are liable to pay TCS of 1%, which highlights that the government had already taken cognisance of the issue. The experts agree that increasing the TCS was a much simpler and faster way to go about things here, instead of introducing a new tax altogether. SEE ALSO <a href="https://www.businessinsider.in/cryptocurrency/news/south-koreas-crypto-regulations-are-tightening-around-investors-and-exchanges-alike/articleshow/86426452.cms">South Korea’s crypto regulations are tightening around investors and exchanges alike</a> <a href="https://www.businessinsider.in/stock-market/news/paras-defence-and-space-technologies-ipo-gets-blockbuster-demand-from-investors/articleshow/86422668.cms">Paras Defence and Space Technologies IPO gets blockbuster demand from investor</a> <a href="https://www.businessinsider.in/business/news/experts-say-karnatakas-ban-on-games-of-chance-like-dream11-and-mpl-may-face-a-legal-test/articleshow/86419697.cms">Experts say Karnataka’s ban on games of chance like Dream11 and MPL may face a legal test</a>

India needs to review how it wants to extract tax from Zomato and Swiggy

<ul><li>The GST council has decided not to levy any new tax on food delivery giant <keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword> and Swiggy. </li><li>It has also decided to continue keeping petrol and <keyword id="6356109" type="General" weightage="20" keywordseo="diesel" source="Orion">diesel</keyword> out of the GST purview.</li></ul><ul><li>It extended the period of concessional GST rates on certain COVID-related drugs by three months.</li></ul>The all-powerful GST Council on Friday decided not to charge food delivery platforms such as Swiggy and Zomato a tax even as it extended concessional tax rates on certain COVID-19 drugs by three months till December 31. The Council, which comprises the Union <keyword id="6355261" type="General" weightage="20" keywordseo="finance-minister" source="Orion">finance minister</keyword> and her state counterparts, decided to continue keeping petrol and diesel out of the GST purview as subsuming the current excise duty and VAT into one national rate would impact revenues. Briefing reporters on the decisions taken by the Council at a meeting here, Union Finance Minister <keyword id="129243" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> said GST has been exempted on muscular atrophy drugs like Zolgensma and Viltepso, which cost crores of rupees. It extended the period of concessional GST rates on certain COVID-related drugs by three months till December 31 but decided not to give the same benefit to medical equipment. The concessional regime for certain medical equipment will end on September 30. Sitharaman said 5 per cent GST will be levied at the point where the delivery is made by Swiggy and Zomato. Also, the Council cut GST rate from 12 per cent to 5 per cent on cancer-related rugs and on fortified rice kernels to 5 per cent from 18 per cent. GST rate on bio-diesel for blending in diesel was reduced to 5 per cent from 12 per cent, while the national permit fee for goods carriage has been exempt from GST. Import of leased aircraft have also been exempted from payment of I-GST, the finance minister said. "GST Council felt it was not the right time to include petroleum products in GST," she said. The panel decided to levy 18 per cent GST on all sorts of pens. Specified renewable sector devices will be charged 12 per cent tax. GST Council also recommended new footwear and textile rates from January 1. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/personal-finance/home-loan-rates-down-on-festive-season-from-sbi-kotak-pnb-and-bank-of-baroda/slidelist/86294431.cms">SBI, Kotak Mahindra and others cut home loan rates ahead of festive season</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/here-are-the-top-funded-business-models-of-last-one-year/slidelist/86292674.cms">From ecommerce to payments — here are the top funded business models of last one year</a>

GST Council meet: No new tax on food delivery apps Swiggy, Zomato

<ul><li>Decriminalisation of offences under the GST law, setting up appellate tribunals and mechanism to curb tax evasion in pan masala, gutkha businesses among the issues to be discussed.</li><li>Besides, GST on online gaming and casinos may come up for deliberations at the Council meeting.</li><li>With regard to taxation of online gaming, casinos and horse racing, the GoM, in its last meeting in November, had agreed on a 28 per cent GST on these segments.</li></ul> Decriminalisation of offences under the GST law, setting up appellate tribunals and mechanism to curb tax evasion in pan masala and gutkha businesses are among the issues slated to be discussed in the <keyword id="3680839" type="General" weightage="20" keywordseo="gst-council-meeting" source="Orion">GST Council meeting</keyword> which began on Saturday morning. Besides, GST on online gaming and casinos may come up for deliberations at the Council meeting. The Group of Ministers (GoM), chaired by Meghalaya Chief Minister Conrad Sangma, set up last year on the issue had submitted its report to Finance Minister Nirmala Sitharaman on Thursday. The Council would also consider a report of tax officers and give clarity on the rate applicability in certain goods and services. "Union Finance Minister Smt. @nsitharaman chairs the 48th meeting of the GST Council via virtual mode, in New Delhi, today," the finance ministry tweeted. With regard to decriminalisation of offences, the law committee of the GST Council, comprising tax officers from the Centre and states, has suggested to the Council to increase the monetary threshold for launching prosecution for GST offences. The law committee has also suggested that the fee payable by taxpayer for compounding of GST offences be lowered to 25 per cent of the tax amount, from up to 150 per cent currently, with a view to improving ease of doing business. It has suggested raising the threshold of launching prosecution to Rs 20 crore, from Rs 5 crore at present. Launching of prosecution by taxmen means commencement of legal proceedings against the offender. The report of the GoM on tax evasion by pan masala and gutkha companies is likely to be taken up for discussion in the Council, sources said. With regard to setting up of Goods and Services Tax Appellate Tribunals (GSTATs), the GoM has suggested that the tribunals should consist of two judicial members, and one technical member each from the Centre and states, besides a retired Supreme Court judge as President, sources said. The GoM on GSTATs was set up in July under the chairmanship of Haryana Deputy Chief Minister Dushyant Chautala. With regard to taxation of online gaming, casinos and horse racing, the GoM, in its last meeting in November, had agreed on a 28 per cent GST on these segments. However, in absence of consensus on whether the tax should be levied on only the fees charged by the portal or the entire consideration, including the bet amount, received from participants, the GoM had decided to refer all suggestions to the GST Council for a final decision. Currently, online gaming attracts 18 per cent GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/how-indians-have-spent-their-money-on-swiggy-in-2022/slidelist/96285686.cms">Spending ₹75,000 on an order to buying groceries worth ₹16.6 lakh, here’s how Indians used Swiggy in 2022</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/upcoming-electric-scooters-in-india-in-2023/articleshow/96278794.cms">From Suzuki and TVS to Hero Electric: Here are some of the top electric scooters expected to launch in 2023</a>

GST Council meet: decriminalisation, tax evasion in pan masala, gutkha biz on agenda

<ul><li>Corporate entities will not be able to reduce their tax burden by claiming input tax credit on corporate social responsibility activities.</li><li>This could also lead to confusion amongst corporate entities since AARs of different states have given contrary rulings in this regard.</li><li>Earlier, Uttar Pradesh AAR had allowed <keyword id="12201693" type="General" weightage="20" keywordseo="ITC-on-CSR" source="Orion">ITC on CSR</keyword> activities, while Kerala AAR took the contrary position.</li></ul>Input tax credit allows registered entities under <keyword id="6354679" type="General" weightage="20" keywordseo="GST" source="Orion">GST</keyword> to claim credit on the goods and services tax (GST) that they have paid while purchasing goods or services, which can be offset from the GST that they have to pay after making sales. However, input tax credit (ITC) can’t be claimed on expenses made towards corporate social responsibility (<keyword id="6354502" type="General" weightage="20" keywordseo="CSR" source="Orion">CSR</keyword>) activities, according to a new order from the Authority for Advance Rulings (AAR) ruling in Gujarat. There are two other rulings from the same authority and one of those allows the input tax credit on CSR. According to the provisions of Companies Act, 2013, companies with a net worth of ₹500 crore or more, or turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more, will have to mandatorily spend on CSR activities. The spend should be a minimum of 2% of the average net profit of the past three years. <cmsannotation type="cmsannotation" annotationid="The root of the problem" comment="subhead" text="The root of the problem">The root of the problem</cmsannotation> The primary issue here is whether CSR activities can be construed as “in course or furtherance of business”, that is, whether they are fundamental for a company to continue its business activities. However, the GST provisions do not define what exactly that would entail. For this purpose, the applicant in this case, Adama India Pvt. Ltd., relied on the provisions of Companies Act, 2013, to state that CSR activities are mandatory as per law, and not undertaking them would cause harm to the business. This, the applicant says, entitles it to take ITC on CSR activities. However, the Gujarat AAR referred to the Companies (CSR Policy) Rules, 2014, to state that CSR activities are not covered in activities “in the course or furtherance of business”. It also cited the provisions of Companies (CSR Policy) Amendment Rules, 2021, which provide a definition of CSR that excludes it from normal business activities. Essentially, the GAAR ruled that since CSR is specifically excluded from the scope of normal business activities, the applicant cannot take ITC on CSR activities. According to Ayush Mehrotra, one of the partners at Khaitan &amp; Co., this is likely to further increase litigation in GST. “The GST framework is wide enough to inter alia include activities without pecuniary benefits and those which are incidental or ancillary to main business. As such, the present ruling will only cause further litigation on GST which was otherwise expected to be a simpler and straightforward framework,” he told Business Insider. <cmsannotation type="cmsannotation" annotationid="Contrary AAR rulings put corporates in a bind" comment="subhead" text="Contrary AAR rulings put corporates in a bind">Contrary AAR rulings put corporates in a bind</cmsannotation> Gujarat AAR’s ruling is in contrast to that of the Uttar Pradesh AAR, which allowed the applicant to take the credit of Goods and Services Tax (GST) paid by the company while purchasing goods to be used for CSR activities. However, it is in line with the Kerala AAR, which passed a similar ruling in the matter of Polycab Wires donating flood relief items. “It is also noteworthy to highlight that since this ruling is in contradiction to prior rulings issued by competent authorities in other states, the urgent need for a national authority is once again being felt to ensure certainty of legal position,” Khaitan added further. The exclusion of ITC on CSR activities will mean that corporate entities will not be able to reduce their tax burden by claiming <keyword id="12201691" type="General" weightage="20" keywordseo="GST-input" source="Orion">GST input</keyword> credit. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/swiggy-tightens-focus-on-grocery-delivery-as-zomato-steps-out/articleshow/86582683.cms">Swiggy tightens focus on grocery delivery, as Zomato steps out</a> <a href="https://www.businessinsider.in/policy/legal/news/sc-landmark-ruling-in-the-samsung-heavy-industries-case-could-have-a-positive-effect-on-ease-of-doing-business-in-india/articleshow/77148341.cms">Supreme Court’s landmark ruling in the Samsung Heavy Industries case could have a positive effect on ease of doing business in India</a> <a href="https://www.businessinsider.in/policy/legal/news/these-are-the-common-laws-that-you-may-be-inadvertently-breaking-in-india/slidelist/76638782.cms">These are the common laws that you may be inadvertently breaking in India</a>

Can you claim input tax credit on CSR expense ⁠— three authorities have two different rulings

New Delhi, Jun 22 () The Competition Commission has disposed of a complaint of unfair business practices against Swiggy. The ruling came on a complaint that alleged Swiggy charges unreasonable and unfair prices from the customers. The informants had complained that Swiggy typically charges a commission on the total order bill amount, inclusive of GST, from partner restaurants. Swiggy charges delivery fee from customers, which generally ranges from Rs 20- 100. At times, it also charges more based on a surge in delivery prices in times of high demand, rains, special occasions and midnight delivery. They had also claimed that the rates charged by Swiggy through its website or app are much higher than the rates offered by the respective restaurants in their outlets, over and above the delivery charges. The complaint claimed that customers are generally unaware of the rates charged by of a particular restaurant in offline mode and thus, cannot compare it with the rates displayed on Swiggy's platform. It also said Swiggy is charging prices higher than the prices charged by the respective restaurants for walk-in customers, without the knowledge of customers. The complainant mentioned that Swiggy is India's largest food-delivery platform. On the allegations, Swiggy submitted that it only operates as an intermediary and the prices displayed on the platform are directly uploaded by its partner restaurants as the decision on pricing solely rest with the them and Swiggy has no direct or indirect role to influence the prices on its platform. With respect to dominance, Swiggy has claimed that it is not dominant in the relevant market. Considering the submissions of Swiggy, the Competition Commission of India (CCI) said that allegations against Swiggy do not appear to be substantiated. Regarding Swiggy's submission that discrepancy in the rates is attributable to the partner restaurants and not to it, CCI said "it would be apposite for Swiggy to give sufficient disclosures on its platform that it is not involved in fixation of price of the products/menus of the restaurants on its platform, so as to allay misgivings, if any, in the minds of any stakeholders including the consumers." SRS BAL BAL BAL

CCI disposes of unfair biz complaint against Swiggy

The e-commerce market in India is projected to increase significantly to over USD 300 billion by 2030 as the country's <keyword id="20107419" type="General" weightage="20" keywordseo="digital-economy" source="keywords">digital economy</keyword> is set to reach a whopping USD 1 billion by the same year. According to <keyword id="19918506" type="General" weightage="20" keywordseo="Invest-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Invest India" meta.hostid="261" meta.entityid="Invest India">Invest India</keyword>, India's online shopper base will be the 2nd largest globally by 2030, with nearly 500-600 Mn shoppers. Even now, India has the 2nd largest Internet user-base globally with 881 million users. India is moving towards becoming a dominant force in global e-commerce by 2030, driven by a growing digital economy and an expanding internet user base. The data from the investment promotion and facilitation agency Invest India from shows India taking the lead in <keyword id="19957108" type="General" weightage="20" keywordseo="online-shopping" source="keywords">online shopping</keyword>, the e-commerce sector in India is valued at USD 70 billion at present. This makes up for just around 7 percent of the total retail market in the country. However, several factors are likely to contribute a bright future outlook for the sector. <cmsannotation type="cmsannotation" annotationid="Growing internet penetration and digital economy" comment="subhead" text="Growing internet penetration and digital economy">Growing <keyword id="20707509" type="General" weightage="20" keywordseo="internet-penetration" source="keywords">internet penetration</keyword> and digital economy</cmsannotation> Internet penetration across has seen substantial growth, with over 60% of the Indian population (918 million) using the internet by September 2023. Further, an estimated 87 percent of Indian households are projected to have internet access as early as 2025. The time spent accessing the internet via mobile devices has also increased by 21 percent compared to 2019. The affordability of data prices in India is a key factor, with one gigabyte of data priced at around USD 0.17 (Rs 13.5), encouraging a large portion of the population to go online. <keyword id="21457667" type="General" weightage="20" keywordseo="mobile-data-traffic" source="keywords">Mobile data traffic</keyword> has tripled from 2018 to 2023, demonstrating the growing dependence on <keyword id="19979951" type="General" weightage="20" keywordseo="digital-platforms" source="keywords">digital platforms</keyword> for diverse requirements. It is projected that by 2026, 1.18 billion people across the country will have access to smartphones, over 80% of India's population. The increasing number of smartphone users along with higher average data consumption per user, boosts the digital economy. The Unified Payments Interface (UPI) has become a major player in digital payments, handling transactions worth USD 1.5 trillion in 2022. There has been a significant increase in the availability of local language and mobile-first content, with about 73 percent of India's internet users utilizing Indian languages. As a result, there is an estimated regional language user base of 540 million, creating a market worth USD 53 billion. Digital infrastructure like UPI, eKYC, and Aadhaar has cut down the consumer onboarding time by 80 percent, enhancing the digital experience. The Open Network for Digital Commerce (ONDC) is another notable initiative by the Government of India, launched in 2022. It aims to provide equal opportunities to MSMEs to thrive in digital commerce and democratize e-commerce. <cmsannotation type="cmsannotation" annotationid="A transition along with growth" comment="subhead" text="A transition along with growth">A transition along with growth</cmsannotation> In FY 2022-23, Government e-marketplace (GeM) registered its highest ever Gross Merchandise Value of $2011 Bn, shows data from Invest India. The projected growth in online shoppers in India is substantial, with a compound annual growth rate (CAGR) of 22 percent to 88 million in rural India and 15 percent to 263 million in urban India from 2019 to 2026. There is a notable transition towards rural-focused value e-commerce, with more than 60 percent of demand anticipated to come from tier 2-4 towns and rural India by 2026. Government programs such as the National Logistics Policy are designed to streamline deliveries to remote areas, improving the efficiency and cost-effectiveness of logistics. The quick commerce market in India's hyperlocal mobility sector is also projected to grow exponentially to achieve a market size of USD 5.5 billion by 2025. Leading companies like Swiggy and Zomato are at the forefront of the market, while startups like Zepto are also gaining substantial market share. <keyword id="20873923" type="General" weightage="20" keywordseo="social-commerce" source="keywords">Social commerce</keyword>, a new trend that uses social networks and digital media to connect buyers and sellers, is also projected to achieve a market size of USD 70 billion by 2030, with small video applications gaining significant popularity. Significant mergers and acquisitions have been observed in the e-commerce sector, with companies such as Zomato and PhonePe making strategic decisions to enhance their positions. Government schemes like Jan Dhan Yojana, BharatNet Project, and the implementation of Goods &amp; Service Tax (GST) have been instrumental in shaping India's digital economy. (With inputs from ANI)

India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030

Centre has extended the deadline for linking Aadhaar with PAN by six more months, till March 2022. The earlier deadline was till September 30. Accordingly, the decision came as a relief measure for tax players during pandemic era. "The Central Government, in continuation of its commitment to address the hardship being faced by various stakeholders on account of the Covid-19 pandemic, has, on consideration of representations received from various stakeholders, decided to extend timelines for compliances under the Income-tax Act, 1961," CBDT said in a statement late on Friday night. "Time limit for intimation of Aadhaar number to the Income tax Department for linking of PAN with Aadhaar has been extended from 30th September, 2021 to 31st March, 2022." Besides, the due date for completion of penalty proceedings under the IT Act has also been extended from September 30, 2021 to March 31, 2022. "Further, the time limit for issuance of notice and passing of order by the 'Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1988' has also been extended to 31st March, 2022." SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/here-is-what-the-indian-film-industry-can-learn-from-gig-economy-firms-like-zomato-and-urban-company/articleshow/86293330.cms">Here is what the Indian film industry can learn from gig economy firms like Zomato and Urban Company</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/policy/economy/news/gst-council-meet-no-new-tax-on-food-delivery-apps-swiggy-zomato/articleshow/86296326.cms">GST Council meet: No new tax on food delivery apps Swiggy, Zomato</a>

Deadline for PAN-Aadhaar linkage extended till March 2022

<ul><li>The government of <keyword id="20154" type="ORGANIZATION" weightage="20" keywordseo="tamil-nadu">Tamil Nadu</keyword> currently imposes 10% <keyword id="935478" type="PERSON" weightage="20" keywordseo="motor-vehicle-tax">motor vehicle tax</keyword> on four wheelers below ₹10 lakh and 15% on vehicles above the said amount.</li><li>Tamil Nadu accounts for almost 10% of all vehicles registered in India, according to the Ministry of Road Transport and Highways.</li><li>A car with a price tag of ₹10 lakh would cost over ₹12.8 by the time you can drive it out of the showroom.</li></ul>The Tamil Nadu government recently released a white paper ⁠— and the state’s Finance Minister Palanivel Thiagarajan echoed the sentiment ⁠— that complained that the tax on motor vehicles in the state had not changed in nearly 15 years. The statement only hints towards one direction, that the government has finally taken notice of the matter that had been lingering around for the past decade and a half. The state — which is also home to the automobile hub of India, Chennai — may also take some action to fix this in the near-future. The small to midsize-car owners and makers of cars ranging upto ₹20 Lakh — may still be able to sail past these potential policy updates. But the risk is much higher for luxury car owners and makers like Mercedes, BMW and any other car maker that sells cars at more than ₹20 lakhs a unit. This could even include the high-end cars from Indian auto giants like Tata Motors and Mahindra. If the Tamil Nadu government decides to act on the white paper, it would make at least one in every 10 cars sold in the country more expensive, at a time when car sales have been slow for over three years. Tamil Nadu is the third largest state in terms of vehicle registration , according to data <a href="https://vahan.parivahan.gov.in/vahan4dashboard/">shared</a> by the Ministry of Road Transport and Highways. As per the data, Tamil Nadu accounts for 10% of vehicles registered between 2017 to August 12 of 2021. Notably, Tamil Nadu currently charges 10% motor vehicle tax on vehicles below ₹10 lakh and 15% tax rate on vehicles above ₹10 lakh. The current car taxation policy in Tamil Nadu: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Costs/Taxes </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cost of car </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,00,000 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Motor Vehicle Tax in Tamil Nadu (at 10% rate) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,00,000 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">GST* (at 18% rate) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,80,000 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Road Safety Tax </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1500 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fee </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹600 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Service Charge </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹200 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹12,82,300 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>*GST ranges between 18-28% based on the size and engine power of the car. The government charges 28% GST or above on sports utility vehicles (SUVs) and luxury cars. As it is visible above, a car with a price tag of ₹10 lakh would be worth ₹12,82,300 by the time you can drive it out of the showroom. This also includes the Goods and Service Tax (GST) imposed by the Union government and split with the state government. Now, Finance Minister Thiagrajan’s worry is that the state is losing revenue and many people from neighbouring states like Kerala and Karnataka are registering their cars in Tamil Nadu because the taxes are lower. The Tamil Nadu government expects to collect a little over ₹6500 crore taxing new motor vehicles by FY22, Finance Minister Thiagarajan said in his state budget speech this week. He also added that the government expects a 12% growth rate in such revenue in each of the next two years. Tax on four wheelers in Tamil Nadu and neighbouring states: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">States </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">For vehicles four wheelers upto ₹5 lakhs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">For purchase value upto ₹10 lakhs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">For vehicles between ₹15-₹20 lakhs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">For vehicles above ₹20 lakh </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><a href="https://tnsta.gov.in/taxes_thirdschedule_sub.jsp">Tamil Nadu</a> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% of purchase price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% of purchase price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% of purchase price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% of purchase price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><a href="https://www.coverfox.com/personal-finance/tax/road-tax/kerala/">Kerala </a> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6% of purchase price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8% of purchase price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% of purchase price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% of purchase price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><a href="https://www.bankbazaar.com/tax/karnataka-road-tax.html">Karnataka</a> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13% of purchase price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14% of purchase price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17% of purchase price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18% of purchase price </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> While the Tamil Nadu government is talking about taxing motor vehicles in general, the data shows that the multiple tax slab schemes been a major point of difference when compared to Karnataka and Kerala. The multiple tax slabs have allowed both Kerala and Karnataka government to charge much higher motor vehicle tax rate to customers buying luxury cars above ₹20 lakh. The other interesting bit here is that while Karnataka taxes motor vehicles more, it still ranks right after Tamil Nadu in terms of the number of vehicles registered in the state. This shows that the tax alone may not be the determining factor. As per the data <a href="https://vahan.parivahan.gov.in/vahan4dashboard/">shared</a> by the Ministry of Road Transport and Highways, Karnataka earned ₹49,782 crore and Tamil Nadu earned ₹44,031 crore in the same period. Kerala, despite not being mentioned as one of the top five states in terms of vehicle registration, was the fifth biggest collector with ₹30,950 crore revenue between the same time frame. Meanwhile, Tamil movie stars <a href="https://www.financialexpress.com/india-news/tamil-actor-vijay-gets-relief-from-madras-high-court-in-rolls-royce-ghost-car-tax-exemption-plea-case/2298732/">Vijay</a> and <a href="https://indianexpress.com/article/cities/chennai/dhanush-faces-hc-wrath-for-seeking-tax-exemption-for-imported-rolls-royce-7440719/">Dhanush</a> had recently approached the courts seeking tax waivers on their imported luxury cars. The courts rejected the plea. A slowing economy, lack of mobility due to lockdowns and increased work from home, has kept car sales in India on the slow lane for a while now. <div type="image" title="Tamil Nadu government is upset about losing money on luxury cars" msid="85322721" hostid="261"></div> Car sales growth rate witnessed a 21-year-low dip in December 2019, according to data<a href="https://economictimes.indiatimes.com/industry/auto/auto-news/reverse-gear-domestic-car-sales-plunge-for-the-10th-straight-month-down-41-in-august/articleshow/71044021.cms?from=mdr"> shared</a> by the Society of Indian Automobile Manufacturers (SIAM). COVID-19 further resulted in <a href="https://www.businessinsider.in/business/auto/news/covid-19-lockdowns-and-curfews-affecting-worlds-fourth-largest-automobile-market/articleshow/82195326.cms">shutting down </a>of production at original equipment manufacturers (OEMs), disrupted supply chain and reduction in consumer demand. Higher duties in states like Tamil Nadu could deter buyers even more. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/india-now-has-four-edtech-unicorns-byju-unacademy-eruditis-upgrad/articleshow/85300757.cms">From Byju’s to Eruditus — India now has four edtech unicorns, thanks to a $4 billion funds flowing in since 2020</a> <a href="https://www.businessinsider.in/business/startups/news/travel-app-ixigo-files-for-a-1600-crore-ipo/articleshow/85292327.cms">Travel app ixigo files for a ₹1,600 crore IPO</a> <a href="https://www.businessinsider.in/business/ecommerce/news/swiggy-reports-nearly-three-fold-increase-in-annual-revenue-in-neck-and-neck-race-with-zomato/articleshow/85233393.cms">Swiggy reports nearly three-fold increase in annual revenue, in neck and neck race with Zomato</a>

Tamil Nadu government is upset about losing money on luxury cars

New Delhi, <keyword id="4742614" type="COMPANY" weightage="20" keywordseo="ministry-of-housing-and-urban-affairs">Ministry of Housing and Urban Affairs</keyword> (MoHUA) has joined hands with <keyword id="830092" type="LOCATION" weightage="20" keywordseo="Zomato">Zomato</keyword> for home delivery of <keyword id="6361952" type="UNKNOWN" weightage="20" keywordseo="Street-Food">street food</keyword> in six cities. As a part of Prime Minister <keyword id="456744" type="PERSON" weightage="20" keywordseo="street-vendor">Street Vendor</keyword>'s AtmaNibhar Nidhi (PM SVANidhi) Scheme, the MoHUA entered into MoU with Zomato, to bring <keyword id="6770639" type="COMPANY" weightage="20" keywordseo="street-food-vendors">street food vendors</keyword> on its food-tech platform. In a statement MoHUA said that initially MoHUA and Zomato will run a pilot program by on-boarding 300 vendors across six cities namely - Bhopal, Ludhiana, Nagpur, Patna, Raipur, Vadodara. "The street vendors will be helped with PAN and fssai registration, training on technology/ partner app usage, menu digitization and pricing, hygiene and packaging best practices. Upon the successful completion of the pilot, MoHUA and Zomato plan to expand this initiative across the country in phases," it said. As per the MoHUA, this will give street food vendors online access to thousands of consumers and help these vendors grow their businesses. The MoHUA also launched the Mobile Application for PMSVANidhi se Samriddhi- Socio-economic profiling of PM SVANidhi beneficiaries and their families to link them to various Central government Schemes. "Covid-19 pandemic has restricted consumers from stepping out and forced them to follow physical distancing norms. In the given scenario it is important to connect Street Food Vendors with technology-enabled platforms to help them grow their business, thus helping them gain financially," said the ministry. In a first of its kind initiative, MoHUA entered into an MoU with Swiggy on October 5 last year and it is now joining hands with Zomato to empower street food vendors with digital technology. The MoHUA has coordinated with the key stakeholders including <keyword id="6414396" type="COMPANY" weightage="20" keywordseo="municipal-corporations">Municipal Corporations</keyword>, fssai, Zomato and GST officials to ensure that street food vendors are facilitated in completing the necessary prerequisites for this initiative. SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/how-big-is-indias-debt-and-should-it-be-a-worry/articleshow/80688623.cms">How big is India's debt and should it be a worry?</a> <a href="https://www.businessinsider.in/stock-market/news/heres-why-you-arent-being-able-to-apply-for-brookfield-reit-ipo-through-zerodha-groww-angel-broking-and-other-stockbroking-apps/articleshow/80686457.cms">Here's why you aren't being able to apply for Brookfield REIT IPO through Zerodha, Groww and other stockbroking apps</a>

Zomato joins hands with the Indian government to deliver street food in Bhopal, Ludhiana, Nagpur, Patna, Raipur, and Vadodara

<ul><li><keyword id="6358032" type="General" weightage="20" keywordseo="spicejet" source="Orion">SpiceJet</keyword> is challenging an appeal to shut down the airline after consecutive years of losses made worse by the pandemic and rising cost of fuel.</li><li>Meanwhile, the mighty Tata Group and billionaire Rakesh Jhunjhunwala are preparing to join the race to dominate Indian aviation.</li><li>In 2015, its current Chairman and Managing Director Ajay Singh took over the airline for ₹2 a share, promising to turn it around, but now, in 2022, the fortunes aren’t looking any better.</li><li>Check out our <a href="https://www.businessinsider.in/bi-newsletter">weekly explainers</a> on the hottest topics and <a href="https://www.businessinsider.in/newsletters_signup.cms">sign up</a> if you like them.</li></ul>The odds of SpiceJet’s survival are turning against the Gurugram-based low-cost airline with every passing day. Two years of losses, followed by a pandemic that brought business to a near standstill, and added more to the losses, leading up to a default of <a href="https://www.businessinsider.in/stock-market/news/indigo-stock-gains-as-a-plea-to-shut-down-spicejet-has-been-admitted/articleshow/88138734.cms">$20 million</a> and a court order to fold the company is a short summary of the company’s recent history. And up ahead this rocky road awaits a tight contest with the mighty Tata Group and billionaires like Rakesh Jhunjhunwala. Chairman Ajay Singh’s fight for his pride and the airline seems to be getting tougher. SpiceJet’s losses have more than tripled since 2019 <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SpiceJet </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Loss </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY2021 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹6,072 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,029 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY2020 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹13,134 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹936 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY2019 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹9,179 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹302 crore </td></tr></tbody></table>Source: Company’s financial reports Ironically, even after that sharp fall in fortunes, Ajay Singh is still sitting on a handsome profit because he got the shares at <a href="https://timesofindia.indiatimes.com/business/india-business/ajay-singh-paid-maran-rs-2-to-acquire-spicejet-in-2015/articleshow/59483822.cms">a paltry sum of ₹2 a share</a> from Sun Group’s Kalanithi Maran. The stock is still trading at ₹65 apiece, but Singh’s profit is just on paper for now. <div type="image" title="spicejet" height="900" width="1200" msid="88742186" hostid="261"></div>The immediate challenges In December 2021, the Madras High Court had reportedly ordered the winding up of SpiceJet and asked the official liquidator to take over the airline’s assets. This happened after the company failed to pay dues of around $24 million to Switzerland-based SR Technics, which provided maintenance and repairing services to the airline for a decade. Adding to it, the airline barely has any money to <a href="https://www.businessinsider.in/business/corporates/news/spicejets-liquidity-turbulence-hits-worlds-largest-aircraft-leasing-companies/articleshow/87583233.cms">pay GST dues of ₹285 crore</a>. This, according to a Business Standard report, has prevented SpiceJet from sending back 13 Boeing 737 aircraft to its lessors. Due to non-payment of tax dues, the tax authorities have refused to grant a ‘no objection certificate’ to SpiceJet to give back the leased aircraft to its lessors. Even If SpiceJet survives these, there will be more turbulence ahead Even with the limited competition so far, SpiceJet has only lost customers ⁠— its market share has gone down to 10% at the end of November from 13.2% in November last year. The company could argue that it’s the second biggest player, but the gap between Singh’s airline and the market leader Indigo, owned by Interglobe Aviation, is a staggering one. And it could get worse with new players with deep pockets entering the space. <div type="image" title="airline" msid="88742190" hostid="261"></div>In October 2021, Tata Sons bought <keyword id="2573" type="General" weightage="20" keywordseo="air-india" source="Orion">Air India</keyword> <a href="https://www.businessinsider.in/thelife/news/tata-sons-just-won-the-bid-for-ownership-of-air-india-in-a-full-circle-moment-see-the-airlineaposs-89-year-history/slidelist/86949254.cms">from the government</a>. Another airline joining the race is <keyword id="11911527" type="General" weightage="20" keywordseo="akasa-air" source="Orion">Akasa Air</keyword>, co-founded by billionaire and marquee investor Rakesh Jhunjhunwala. “If a downturn like this comes around again and you have guys like Tatas, Rakesh Jhunjhunwala willing to pump in a lot of money into the new product. And you are sitting crash-strapped, not able to access capital, you are as good as pushing yourself out of the market,” said Praveen Paul, a Bengaluru-based aviation consultant. And the pandemic isn’t helping “I think SpiceJet’s revival will take much longer. Now lots of restrictions posted by many cities, states, governments and in any case business travel was going to take a lot of time, which has already come down. Besides, we are already in winter and people are deferring their holidays both domestic and international. So overall industry outlook is not good with oil prices remaining firm and demand not picking up,” said aviation expert Amrit Pandurangi. Rising fuel prices are making it worse. Aviation turbine fuel (ATF) prices have nearly doubled in the last 12 months. Given that these costs <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/atf-price-hike-set-to-hurt-aviation-travel-rebound/articleshow/87476903.cms">account</a> for up to 40% of an airline’s total operating costs, this is a major cause of concern for the ailing SpiceJet. “All these airlines have huge dues to pay regularly. It is like people paying EMI, they have to pay lease for aircrafts, pay parking charges whether or not they fly aircraft, air traffic charges. Only variable cost for airlines is fuel cost and air traffic charges, everything else is fixed cost,” Paul said. SpiceJet was co-founded by Ajay Singh in 2005 with the objective of making flying affordable for all Indians. In 2010, Singh exited the airline. Five years later, when the airline was on the verge of shutting down, Singh rescued the airline by buying 58% stake at a dirt cheap price. Now, in 2022, the future isn’t looking any more rosy than it did in 2015. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/mukesh-ambani-led-reliance-retail-has-invested-200-million-in-google-backed-dunzo/articleshow/88734641.cms">Asia’s richest man Mukesh Ambani makes a new purchase to take on Amazon and Swiggy in quick commerce</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/policy/news/india-will-start-issuing-e-passport-says-external-affairs-ministry/articleshow/88730830.cms">Indians will soon be able to carry e-passports while travelling</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/mukesh-ambani-led-reliance-industries-raises-4-billion-in-us-dollar-bonds/articleshow/88730413.cms">Mukesh Ambani-led Reliance Industries raises $4 billion in US dollar bonds</a>

You Searched For "GST on Swiggy" and got 12 results

Zomato, Swiggy slapped with Rs 500 crore GST each: Report

IANS

Zomato stock down after Rs 400 cr show-cause notice for GST dues

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India needs to review how it wants to extract tax from Zomato and Swiggy

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GST Council meet: No new tax on food delivery apps Swiggy, Zomato

PTI

GST Council meet: decriminalisation, tax evasion in pan masala, gutkha biz on agenda

PTI

Can you claim input tax credit on CSR expense ⁠— three authorities have two different rulings

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CCI disposes of unfair biz complaint against Swiggy

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India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030

BI India Bureau

Deadline for PAN-Aadhaar linkage extended till March 2022

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Tamil Nadu government is upset about losing money on luxury cars

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Zomato joins hands with the Indian government to deliver street food in Bhopal, Ludhiana, Nagpur, Patna, Raipur, and Vadodara

IANS

It’s not just COVID-19 ⁠— SpiceJet’s survival is getting challenged by rising costs, low cash, and new players with deep pockets

Bhakti Makwana