An X user and Zomato customer has sparked fresh scrutiny around the food delivery giant after alleging that GST was being charged on an order from a restaurant listed as “Unregistered” on the platform. The customer posted screenshots of the invoice and tagged both @zomato and @zomatocare, calling the practice “completely unethical and illegal.”
Recently, an X user named Sourav Mitra called out a Zomato GST Scam
Sourav shared a screenshot of the Tax Invoice, which shows that the customer was charged GST even though the restaurant’s GSTIN status is unregistered. In a tweet, the customer wrote,
Zomato GST scam
@zomato can you explain the gst charges for a restaurant where your invoice says its Unregistered? It’s completely unethical and illegal. See images. There are more than 10 lakh orders each day and i am unsure how many of them hv their gst registered. @zomatocare
He also tagged @deepigoyal, @jagograhakjago, and @GST_Council in the comments.
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Zomato GST scam@zomato can you explain the gst charges for a restaurant where your invoice says its Unregistered? It’s completely unethical and illegal. See images. There are more than 10 lakh orders each day and i am unsure how many of them hv their gst registered.@zomatocare pic.twitter.com/3pSM5MWqdA
— Sourav Mitra (@sourav_mitra225) June 27, 2025
The post raises concerns over the transparency of charges applied by partner restaurants on delivery platforms.
Zomato responded to the tweet with a clarification post
In response to the complaint, Zomato issued a detailed clarification, quoting the current GST law. Addressing the user, Zomato wrote,
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“Hi Sourav, we would like to inform you that as per the GST law, E-commerce operators are obligated to discharge tax on restaurant services provided by registered as well as unregistered restaurants through its platform. Accordingly, for your order, Zomato has collected tax and paid the same to the Government on behalf of the unregistered restaurant.”
Hi Sourav, we would like to inform you that as per the GST law, E-commerce operators are obligated to discharge tax on restaurant services provided by registered as well as unregistered restaurants through its platform. Accordingly, for your order, Zomato has collected tax and…
— Zomato Care (@zomatocare) June 27, 2025
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The reply was meant to assure users that no foul play was involved and that taxes collected were being duly remitted to the authorities.
This isn’t the first time Zomato has faced heat over GST practices. In late 2023, the Directorate General of GST Intelligence (DGGI) served the company a notice demanding ₹401.7 crore in unpaid taxes related to delivery charges.
The case escalated in 2024 when the tax liability rose to over ₹800 crore with added penalties and interest. This fresh user complaint has brought attention back to the platform’s tax compliance and billing structure.
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GST on Unregistered Restaurants
As per current GST regulations, online food delivery platforms like Zomato and Swiggy are required to collect and pay 5% GST on food orders, regardless of whether the restaurant is registered under GST or not. This policy came into effect to plug revenue leakages and ensure uniform taxation.
However, many customers remain unaware that GST can be charged even when the restaurant itself isn’t registered. In such cases, the e-commerce operator (Zomato, in this case) is responsible for collecting and depositing the tax.
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What can you do as a Customer?
If you’re a regular user of food delivery apps, always check the invoice; the GSTIN of a restaurant should be clearly mentioned in it, understand the law, GST may still be applicable, and platforms like Zomato are legally obliged to collect it, even for unregistered partners. If anything feels unclear, you can always contact customer care or file a formal grievance via app support.
Zomato’s clarification may offer relief to some users, but the incident highlights an ongoing issue: a lack of awareness around how GST functions on e-commerce platforms. As regulatory scrutiny increases, food delivery companies must not only ensure legal compliance but also invest in educating users about what they’re being charged and why.
Were you aware of the GST regulations on an unregistered restaurant? Let us know in the comments.
