Did Eternal, the Parent of Zomato and Blinkit, Receive a Rs 3.7 Crore GST Demand Order?
Synopsis
Eternal, the parent company of Zomato and Blinkit, is facing a GST demand order of Rs 3.7 crore for short payments between April 2019 and March 2020. With plans to appeal, the company believes it has a solid case supported by legal advisors.
Key Takeaways
Eternal faces a GST demand of Rs 3.7 crore .
The order relates to tax payments from April 2019 to March 2020 .
The company intends to appeal the order.
Eternal claims to have a strong case supported by legal advisors.
The demand includes interest and penalties .
New Delhi, Jan 7 (NationPress) Eternal, the holding company for Zomato and Blinkit, has been issued a goods and services tax demand order totaling approximately Rs 3.7 crore, inclusive of interest and penalties, for the fiscal year spanning April 2019 to March 2020.
This order was authorized by the Additional Commissioner of State Tax (Appeals) in West Bengal and pertains to an alleged shortfall in the payment of output GST.
Eternal made this announcement in a regulatory filing submitted late on Tuesday evening.
As per the filing, the company received the order on January 6, 2026, which confirms a demand for GST of Rs 1.92 crore, along with accrued interest of Rs 1.58 crore and a penalty of Rs 19.24 lakh, bringing the total 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 stated in its exchange filing.
Eternal clarified that the demand has arisen due to an alleged short payment of output tax, along with applicable interest and penalties for the time frame in question.
Despite this, the firm asserts that it possesses a robust case on its merits. “The demand order has been received concerning short payment of output tax along with interest and penalties,” it noted in its filing.
“We hold the belief that we have a strong case on merits, supported by insights from our external legal and tax advisors,” it concluded.
The company intends to contest the order and plans to lodge an appeal with the appropriate authority.
Eternal further stated that it does not anticipate the demand to have a significant impact, as it will pursue all available legal recourses.
“The Company will be filing an appeal against the order before the appropriate authority,” Zomato added.
Point of View
This development regarding Eternal is significant. While the company faces a substantial GST demand, their intent to appeal and confidence in their legal standing suggest a proactive approach. This situation highlights the challenges that businesses can encounter regarding tax regulations, and it's essential to monitor how this unfolds.
NationPress
9 May 2026
Frequently Asked Questions
What is the amount of the GST demand order against Eternal?
The GST demand order against Eternal amounts to nearly Rs 3.7 crore, which includes interest and penalties.
For which period does the GST demand apply?
The GST demand applies to the period between April 2019 and March 2020.
What is Eternal's stance on the GST demand?
Eternal believes it has a strong case and plans to appeal the order.
Who issued the GST demand order?
The order was issued by the Additional Commissioner of State Tax (Appeals) in West Bengal.
What are the components of the total GST demand?
The total GST demand includes a principal amount of Rs 1.92 crore, interest of Rs 1.58 crore, and a penalty of Rs 19.24 lakh.
