NEW DELHI: Eternal Limited, the company formerly known as Zomato Limited, has disclosed in a regulatory filing that it has allegedly received a goods and services tax (GST) demand order totalling approximately Rs 128.35 crore from tax authorities in Uttar Pradesh.
The order, issued by the Deputy Commissioner of State Tax in Lucknow, comprises a GST demand of Rs 64.17 crore for the period from April 2023 to March 2024, along with an equivalent penalty of Rs 64.17 crore. The demand also includes applicable interest on the outstanding amount.
According to the filing with the BSE and National Stock Exchange, the order was passed under Section 74 of the Central GST and Uttar Pradesh GST Acts. The tax authority has alleged “short payment of output tax and excess availment of input tax credit” by the company.
In its disclosure, Eternal Limited expressed confidence in its legal position and announced its intention to fight the order. “We believe that we have a strong case on merits and the Company will be filing an appeal against the order before the appropriate authority,” the company stated.
The food delivery and restaurant aggregator platform, which had rebranded from Zomato to Eternal Limited earlier, assured investors that it does not expect any financial impact from this development. This indicates the company is confident of obtaining a favourable outcome in the appellate process.
The order comes at a time when Indian tax authorities have been intensifying scrutiny of e-commerce and service platforms to ensure GST compliance. The substantial penalty amount, equal to the original tax demand, allegedly reflects the authority’s view of the violation as significant.
Market analysts will be closely observing how this development affects investor sentiment towards the company, which has been working to achieve sustained profitability in recent quarters.
