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Zomato Parent Eternal Hit with Rs 3.7 Crore GST Demand Order for 2019-20

Eternal, the parent company of food delivery platforms Zomato and Blinkit, has been issued a goods and services tax demand order totaling nearly Rs 3.7 crore. The order from a West Bengal tax authority pertains to the alleged short payment of output GST for the financial year 2019-20. The company, in its regulatory filing, stated it believes it has a strong legal case and will appeal the decision. Eternal does not expect the demand to have a material financial impact as it pursues legal remedies.

Key Points: Zomato's Eternal Gets Rs 3.7 Crore GST Demand Order

  • Rs 3.7 crore GST demand
  • Period from April 2019 to March 2020
  • Order from West Bengal tax authority
  • Company plans to file appeal
  • Says no material impact expected
2 min read

Zomato, Blinkit parent Eternal gets Rs 3.7 crore GST demand order

Eternal, parent of Zomato & Blinkit, receives Rs 3.7 crore GST demand for 2019-20. Company plans to appeal the order.

"We believe that we have a strong case on merits - Eternal regulatory filing"

New Delhi, Jan 7

Eternal, the parent company of Zomato and Blinkit, has received a goods and services tax demand order amounting to nearly Rs 3.7 crore, including interest and penalty, for the period between April 2019 and March 2020.

The order was issued by the Additional Commissioner of State Tax (Appeals), West Bengal, and relates to the alleged short payment of output GST.

Eternal disclosed the development in a regulatory filing late on Tuesday evening.

According to the filing, the company received the order on January 6, 2026, confirming a GST demand of Rs 1.92 crore, along with interest of Rs 1.58 crore and a penalty of Rs 19.24 lakh, taking the total amount to Rs 3,69,80,242.

"The Company has received an order on January 6 for the period April 2019 to March 2020 passed by Additional Commissioner of State Tax (Appeals), West Bengal confirming demand of GST of Rs 1,92,43,792 with interest of Rs 1,58,12,070 and penalty of Rs 19,24,380," it said in its exchange filing.

Eternal said the demand has been raised for short payment of output tax, along with applicable interest and penalties for the relevant period.

However, the company maintained that it has a strong case on merits. "The demand order has been received with respect to short payment of output tax with interest and penalty thereon," it said in its filing.

"We believe that we have a strong case on merits which is backed by opinions from our external legal and tax advisors," it added.

The company added that it plans to challenge the order and will file an appeal before the appropriate authority.

Eternal said it does not expect the demand to have a material impact, as it will pursue all legal remedies available to it.

"The Company will be filing an appeal against the order before the appropriate authority," Zomato added.

- IANS

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Reader Comments

R
Rohit P
As a regular Zomato user, I hope this doesn't lead to another hike in platform fees or delivery charges. We are already paying so much. Companies should get their taxes right.
A
Aman W
Good to see the tax authorities are doing their job. Big tech companies must follow the same rules as everyone else. If there's a short payment, they should pay up with interest. It's only fair.
S
Sarah B
The period is from 2019-2020. It's 2026 now. These disputes take so long to resolve in India. This legal uncertainty is not good for business or investor confidence.
K
Karthik V
They say they have a strong case and will appeal. Often these are complex interpretations of GST rules. Let's see what the appellate authority says. Due process should be followed.
N
Nisha Z
While compliance is important, I respectfully think the penalty amount seems quite high compared to the alleged shortfall. The system should encourage compliance, not just punish. Hope the appeal brings some clarity.
D
David E
This is a standard part of doing business at this scale. Tax disputes happen. The key is they've disclosed it transparently to the exchanges. That's good corporate governance.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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