CHENNAI: Food delivery platform Eternal (formerly Zomato) has received a goods and services tax demand order amounting to Rs 3.7 crore, inclusive of interest and penalty, the company said in a regulatory disclosure. The order has been issued by the tax authorities following an assessment related to alleged discrepancies under GST provisions.
The company said in a statement on Wednesday that the demand pertains to matters under dispute and has arisen from a routine scrutiny of filings. Eternal added that it believes it has strong grounds to contest the order and is in the process of evaluating the notice in detail. The company plans to pursue appropriate legal remedies within the stipulated timelines, including filing an appeal before the relevant appellate authority.
Eternal clarified that the demand does not have a material impact on its financial position or ongoing operations. It also stated that there has been no interruption to business activities as a result of the order.
GST demand notices typically involve disagreements over tax liability, input tax credit claims, or classification issues, and companies often challenge such orders through the appellate process. Eternal said it will take all necessary steps to protect its interests and will keep investors informed of any significant developments in the matter.