Zomato-Parent Eternal Hit With ₹3.69 Crore GST Penalty for FY20; Plans Appeal
Online food delivery giant Zomato’s parent company Eternal Limited has received a goods and services tax (GST) demand order of ₹3.69 crore from West Bengal tax authorities for the period April 2019 to March 2020, according to a company filing made public on Tuesday, 6 January 2026. The order, issued by the Additional Commissioner of State Tax (Appeals), West Bengal, alleges short payment of output tax with interest and penalty.
The total GST liability comprises ₹1,92,43,792 in tax, ₹1,58,12,070 in interest and ₹19,24,380 in penalties, bringing the combined figure to ₹3,69,80,242. Eternal said the demand order was received in connection with the suspected shortfall in output tax payments for the fiscal year 2019–20.
Eternal, which operates Zomato and Blinkit among other businesses, plans to appeal the order, asserting it has a “strong case on merits” supported by external legal and tax advisors. The company believes it can successfully contest the penalty through the appropriate appellate authority. Meanwhile, Eternal’s shares have seen modest market movement following the announcement.
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