Zomato parent Eternal gets over ₹40 crore tax demand from GST authority

Eternal Ltd, formerly known as Zomato, has been served with three orders by the Goods and Services Tax (GST) department, raising a demand of more than ₹40 crore. The orders, issued by the Joint Commissioner (Appeals)-4, Bengaluru, cover the period between July 2017 and March 2020.

According to the company’s regulatory filing late on Monday, the confirmed demand comprises GST of ₹17.19 crore, interest of ₹21.42 crore, and a penalty of ₹1.71 crore.

Eternal to appeal orders

Eternal stated that it will challenge the tax demand before the appropriate authority. “We believe that we have a strong case on merits, backed by view from lawyers and the company will be filing appeals against the orders before the appropriate authority,” the company said in the filing.

What’s next

With its legal team confident of the merits of the case, Eternal is expected to move swiftly with appeals in the coming weeks. The outcome of the case could influence how the company manages its tax positions across its multiple businesses.

Eternal’s new venture- ‘Blinkit Foods’

On August 21, Eternal announced that its quick-commerce arm Blinkit launched Blinkit Foods, marking an entry into ready-to-cook and packaged food categories. The move is aimed at strengthening its presence in the high-growth grocery and convenience segment.

Eternal Ltd: Rebranding its identity

Eternal Ltd came into being after Zomato rebranded itself in 2025 to reflect its wider business portfolio. The group now includes Zomato’s food delivery platform, Blinkit, Hyperpure, and District. The new identity was designed to position the company as a multi-vertical consumer internet firm rather than being viewed solely as a food delivery service.

At 11:08 am, shares of Eternal Ltd were trading at ₹318.90, down ₹6.95 or 2.13 per cent on the day.