Eternal Limited, the parent company of Zomato and Blinkit, led by CEO Deepinder Goyal, has been served with three Goods and Services Tax (GST) demand orders totaling over ₹40 crore. The orders, issued by the Joint Commissioner (Appeals)-4 in Bengaluru, cover the period from July 2017 to March 2020. According to the company’s regulatory filing, the demands include ₹17.19 crore in GST, ₹21.42 crore in interest, and a penalty of ₹1.71 crore. These demands stem from alleged short payment of output tax and excess claims of input tax credit during the specified period.
Eternal, which operates four key businesses—Zomato, Blinkit, District, and Hyperpure—has stated its intention to challenge the orders, asserting that they lack merit. “We believe that we have a strong case on merits, backed by opinions from our external legal and tax advisors,” the company said in its filing. Eternal plans to file appeals before the appropriate authority, confident that the orders will not have a significant financial impact.
The GST demands break down as follows:
- ₹2.29 crore for short payment of output tax between July 2017 and March 2018.
- ₹27.94 crore for excess input tax credit claimed in FY2018-19.
- ₹11.09 crore for similar claims in FY2019-20.
These orders mark the second tax-related issue for Eternal this month. Earlier in August 2025, the company faced a tax demand and penalty of ₹1.34 crore for FY2021-22. The period under scrutiny (July 2017 to March 2020) coincides with the early years of India’s GST regime, a time when many companies faced disputes due to evolving regulations and differing interpretations of compliance requirements.
Eternal’s management remains optimistic, emphasizing its robust legal position. The appeals process, however, may take months or even years, depending on the complexity of the case and the judicial backlog. Despite the tax demands, Eternal’s financial scale—bolstered by Zomato’s market capitalization of over ₹3 lakh crore as of July 2025—suggests that the ₹40 crore demand is unlikely to significantly dent its operations. The company reported a 70% year-on-year increase in operating revenue to ₹7,167 crore in Q1 FY26, driven by strong growth in its food delivery and quick commerce businesses, although net profit fell to ₹25 crore due to investments in Blinkit and other verticals.
This development comes amid Eternal’s broader strategic shifts. The company, formerly known as Zomato Limited, rebranded to Eternal Ltd. in April 2025 to reflect its expansion into quick commerce (Blinkit), B2B supplies (Hyperpure), and restaurant services (District). The rebranding and the rapid growth of Blinkit, which surpassed Zomato’s food delivery business in net order value in Q1 FY26, have positioned Eternal as a diversified tech player. However, ongoing regulatory scrutiny underscores the challenges of navigating India’s complex tax landscape.
As Eternal prepares to appeal the GST orders, investors and analysts will closely monitor the outcome. While the tax demand is relatively small compared to the company’s overall valuation, prolonged legal battles could impact investor sentiment. For now, Eternal’s leadership is focused on leveraging its legal resources to contest the demands and continue its growth trajectory in India’s competitive foodtech and quick commerce markets.
Last Updated on: Thursday, August 28, 2025 4:41 pm by BUSINESS SAGA TEAM | Published by: BUSINESS SAGA TEAM on Thursday, August 28, 2025 4:41 pm | News Categories: Business Saga News
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