Zomato parent Eternal faces Rs 40 Cr GST demand, plans to appeal

Eternal, the parent company of Zomato and Blinkit, has received a tax notice of ₹40.33 crore from the GST department in Gurugram for the period July 2017 to March 2020.

As per its stock exchange filing, Zomato’s parent Eternal received a tax order claiming a GST shortfall of ₹17.19 crore, plus ₹21.42 crore in interest and ₹1.72 crore as penalty. 

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The demand includes ₹0.90 crore for FY18, ₹11.27 crore for FY19, and ₹5.02 crore for FY20. Zomato said it doesn’t expect any financial impact, arguing it has a strong case and will appeal. 

This is the latest in a series of GST-related tax demands on Zomato, especially concerning delivery charges and input tax credits, many of which are still under litigation. The company maintains it is not liable to pay these amounts.

Last month, Eternal posted a sharp 90% YoY drop in consolidated net profit to ₹25 crore for Q1 FY26, down from ₹253 crore a year earlier. On a sequential basis, Zomato’s net profit fell 35.9% from ₹39 crore in Q4 FY25. Meanwhile, revenue grew nearly 70% to ₹7,167 crore, compared to ₹4,206 crore last year, driven by Zomato and Blinkit operations.

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