NEW DELHI: Swiggy and Instakart have said that tax authorities are probing their vendors for alleged GST default and that they are not under the scanner.
“This probe by the GST Authority is on two external manpower vendors for their alleged GST default. These manpower vendors were service providers of Instakart and had valid GST registration number given by the department. This should not be misconstrued as being related to any wrongdoing by us. We’re a law-abiding company and have fully cooperated with the department on this since the beginning,” a company spokesperson said.
While denying allegations of any wrongdoing involving Greenfinch, a third-party vendor, Swiggy said: “Swiggy has been assisting the GST authorities by providing details of the transactions with the concerned vendor. The vendor is a bona fide entity having operations in multiple cities, with regular statutory filings in registrar of companies, GST and I-T. Swiggy has provided all the details of its transactions with the vendor, along with valid service contracts, receipts of contracted services, proof of actual order deliveries to its consumers, and payments through banking channels.”
It said that the issue dated back to November 2019, when a GST survey had been undertaken which was related to non-payment by the vendor.
“During this survey, Swiggy was coerced to reverse the input tax credit citing certain irregularities by the vendor as they were untraceable. This reversal of credit was made without prejudice, and by reserving the company’s rights to recover it following the due process of law. As a result of this action, Swiggy also initiated legal proceedings against the vendor, and an arbitration process is currently underway. Subsequently, an income tax survey was conducted this week as a follow-on action wherein the Swiggy team has provided all documents to the authorities and proved its bona fide.”