Zomato hit with GST demand order of ₹8.29 crore; company to file appeal

Eternal Limited (formerly known as Zomato Limited) has disclosed that it has received a Goods and Services Tax (GST) demand order amounting to ₹8.29 crore, along with interest and penalty, from the Deputy Commissioner (State Tax), State Special Circle-I, Andhra Pradesh. The order pertains to the financial year April 2022 to March 2023.

According to the company’s filing with the stock exchanges on December 4, 2025, the total tax demand comprises: GST Demand: ₹8,29,46,172, Interest ₹4,63,97,288 and Penalty of ₹82,94,617

The adjudication order was issued under Section 73 of the Central Goods and Services Tax Act, 2017 and the corresponding provisions of the Andhra Pradesh GST Act. Section 73 of the Central Goods and Services Tax (CGST) Act, 2017 deals with cases where tax has not been paid, has been short-paid, or input tax credit (ITC) has been wrongly availed or utilized without any element of fraud or willful misstatement or suppression of facts.

The order alleges that the company had a short payment of output tax, leading to the calculated interest and penalty. Eternal clarified in its disclosure that the demand relates to this alleged shortfall.

Despite the demand raised, Eternal Limited stated that it believes it has a strong case on merits and will file an appeal before the appropriate authority. The company also said it does not expect any financial impact as a result of the order, signaling confidence in a favorable outcome.

Eternal Ltd which operates food delivery platform Zomato and quick commerce firm Blinkit, on October 16 reported a 63 percent year-on-year (YoY) decline in quarterly profit after tax (PAT) at Rs 65 crore in the second quarter (Q2) of financial year 2025-26 (FY26), down from Rs 176 crore in the same period a year ago.

The company, which re-branded itself from Zomato to Eternal in March, had reported a net profit of Rs 25 crore in the previous quarter.

Zomato’s revenue from operations rose 183 percent YoY to Rs 13,590 crore in Q2, up from Rs 4,799 crore a year ago. It had reported a revenue of Rs 7,167 crore in the previous quarter.