GST Authority sends tax demand, penalty of over Rs 40 cr to Eternal File photo/ TNIE
Business

Eternal, Zomato’s parent, gets over Rs 40 crore GST demand

The development comes at a time when Eternal is investing heavily to grow its businesses.

TNIE online desk

CHENNAI: Eternal Ltd., the parent company of Zomato, Blinkit, District and Hyperpure, has received tax demand orders from the GST authority amounting to more than Rs 40 crore. The orders were issued by the Joint Commissioner (Appeals)-4 in Bengaluru and cover the period between July 2017 and March 2020.

The total demand includes Rs 17.19 crore in GST dues, Rs 21.42 crore as interest, and Rs 1.71 crore as penalty.

Eternal said in a regulatory filing that it plans to challenge the orders and has already taken legal advice. The company believes it has a strong case and does not expect any material financial impact because of this dispute.

The development comes at a time when Eternal is investing heavily to grow its businesses. In the June quarter of FY26, the company reported a net profit of Rs 25 crore, sharply lower than the Rs 253 crore it made a year earlier, though revenue jumped 70% to Rs 7,167 crore.

The tax demand adds to the regulatory pressure on India’s fast-growing digital platforms, but Eternal’s management appears confident about resolving the matter through the appeals process, said an industry expert, who doesn't want to be identified due to work confidentiality.

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