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Eternal faces GST demand orders worth Rs 40.32 crore
Eternal Ltd, formerly known as Zomato Ltd said that the orders confirm a total GST demand of Rs 17.19 crore, along with interest of Rs 21.42 crore and penalty of Rs 1.71 crore.
Eternal Ltd says no financial impact expected despite Rs 40 crore GST demand
Eternal Ltd, formerly known as Zomato Ltd, on Thursday informed the exchanges that it has received three demand orders from the office of the Joint Commissioner (Appeals-4), Bengaluru, covering the period July 2017 to March 2020. The orders confirm a total GST demand of Rs 17.19 crore, along with interest of Rs 21.42 crore and penalty of Rs 1.71 crore.
According to the filing, the company has been directed to pay GST of Rs 89.92 lakh, interest of Rs 1.30 crore, and penalty of Rs 8.99 lakh under Section 73 of the CGST Act, 2017 and the Karnataka GST Act for the period between July 2017 and March 2018; Rs 11.27 crore, interest of Rs 14.54 crore, and penalty of Rs 1.12 crore from April 2018 and March 2019, and Rs 5 crore, interest of Rs 5.57 crore, and penalty of Rs 50.19 lakh between April 2019 and March 2020, respectively.
“The demand order has been received with respect to excess availment of input tax credit with interest and penalty thereon,” Eternal said in a statement.
Eternal, which operates businesses including Zomato, Blinkit, District, and Hyperpure, added that it believes it has a strong case on the merits and does not expect any financial impact on the company.
Notably, Eternal is witnessing a sharp decline in profit for the past two consecutive quarters. The profit in the June quarter FY26 stood at Rs 25 crore. In the previous quarter, Eternal registered a profit of Rs 39 crore (Q4 FY25), while in Q1 FY25, the company's profit was at Rs 253 crore.
On the reduced margin, Eternal founder Deepinder Goyal said the impact was due to lower availability of delivery partners due to festivals and adverse weather conditions (onset of summer and rains in different parts of the country).
However, Goyal added, "Long term, we believe there is further scope of some margin expansion but the current focus is on ramping up investments to drive further growth in the business".
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