• If a Food Delivery/Home Delivery company is found guilty of not paying tax or GST...

Let's say a Food Delivery/Home Delivery company is found guilty of not paying tax or GST (found guilty of not fulfiling compliances or licenses). The owner of the company will get penalty/punishment for that, maybe. Does the deliveryman of that company also get penalty/punishment for that?

Thank you and Regards,
Imon Sarkar.
Asked 3 hours ago in Business Law

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2 Answers

The food delivery boy is only an employee of the company and not its owner legally. If the company flouts tax laws, the employee is in no way legally liable for the employer's actions.

Swaminathan Neelakantan
Advocate, Coimbatore
3199 Answers
20 Consultations

The delivery agent does not receive penalties or punishment for corporate-level tax evasion or non-compliance committed by the company.

Under Section 137 of the Central Goods and Services Tax (CGST) Act in India, for example, only individuals who direct, control, or willfully consent to company tax fraud (directors, managers, or officers) are held criminally or financially liable.

A delivery agent simply accepting orders via an app and fulfilling them has no legal knowledge of whether the parent company paid its GST or renewed its operational licenses. Therefore, law enforcement or tax authorities cannot charge the worker for the employer's fraud.

If the company fails to pay GST or lacks corporate licenses, the government targets the owners, executive management, and corporate bank accounts—not the gig workers delivering the food.

T Kalaiselvan
Advocate, Vellore
91053 Answers
2525 Consultations

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