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I-T department pegs restaurant tax evasion at over Rs 25,000 crore, with Swiggy and Zomato data flagging Rs 7,500 crore
Our read
The tax drive will most likely land on restaurants rather than platforms, but Swiggy will probably have to share more data and tighten partner checks.
For operators
If you sell through Swiggy or Zomato, reconcile the TDS deducted on your payouts against your filed returns now, because the I-T department found 8,000 restaurants with TDS deducted but no returns filed and has planned a compliance drive.
Watch
Non-filing restaurants above the 8,000 identified, by the compliance drive's first-round results, would mean platforms face wider data requests and partners more notices.
The report,
Swiggy and Zomato data shows 8,000 restaurants had TDS deducted against them but filed no returns. The income tax department plans a new compliance drive to get restaurants and eateries to pay the taxes they owe.
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Reported figures
From the report. Source details below
| Restaurant revenue via delivery apps in 2024-25: | Rs 2,700 crore |
|---|---|
| TDS deducted on that revenue in 2024-25: | Rs 25 crore |
| TDS collected over four years: | Rs 75 crore |
| Rise in such restaurants over four years: | 65% |
| Current TDS rate on food delivery orders: | 0.1% |
What to watch next
- A formal I-T notice or circular asking delivery platforms for expanded reporting
- Swiggy or Zomato disclosing the drive as a risk or a cost in a filing or earnings call
- Restaurant partners delisting or reducing orders on the platforms after notices go out
- Any I-T statement putting recovered tax against the over ₹25,000 crore estimate
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- The I-T department is likely to send notices and advisories to restaurants flagged in the Swiggy and Zomato data, starting with the largest non-filers.
- Swiggy is likely to share transaction and TDS data on request and to stress that it deducts TDS as required.
- Swiggy may tighten partner onboarding, for example by asking restaurants for tax registration details.
- Zomato is likely to respond the same way as Swiggy, so no platform gains a compliance advantage.
- Restaurant associations may push back on the notices and ask for a phased process or a voluntary-compliance window.