Business magnate Deepinder Goyal's company, Eternal, confronts a GST liability exceeding Rs 40 crore. Here's their proposed course of action moving forward.
Eternal Limited Faces Tax Demands Totalling Over Rs 40 Crore
Eternal Limited, the parent company of popular food delivery platform Zomato, has been hit with tax demands totaling more than Rs 40 crore from the Goods and Services Tax (GST) department.
According to reports, the demands cover a period between July 2017 and March 2020. The company has been asked to pay Rs 2.29 crore as output tax for the period between July 2017 and March 2018. An additional demand of Rs 11.09 crore has been made for excess input tax credit claims in FY2019-20. The total demand includes tax, interest, and penalties, amounting to Rs 27.94 crore for the same fiscal year.
Moreover, Eternal has received an additional tax demand and penalty of Rs 1.34 crore for FY2021-22. The orders were passed by the Joint Commissioner (Appeals)-4, Bengaluru.
Despite these tax-related issues, Eternal is pushing forward with its investments in new verticals. The company has committed Rs 150 crore toward its 10-minute food delivery service Bistro, AI-native customer support platform Nugget, and its Greening India initiative.
Blinkit, a quick commerce arm of Eternal, overtook the food delivery unit Zomato in revenue during the quarter, posting Rs 2,400 crore. This is more than double its year-ago tally. Bistro, a service of Eternal, now operates 38 kitchens in Delhi NCR and Bengaluru.
Despite the tax demands, Eternal Limited believes the orders are without merit and intends to appeal them. The company's consolidated net profit in the first quarter of FY26 fell 90% to Rs 25 crore, compared to Rs 253 crore in the same period last year. Zomato recorded revenue of Rs 2,261 crore in the same quarter.
In other news, Eternal is also investing in new verticals, including Bistro, Nugget, and the Greening India initiative. The investment in these new areas demonstrates the company's commitment to diversification and growth.
