Restaurant India News: Eternal Receives Rs 3.7 Crore GST Demand for FY20, Plans Legal Challenge

Eternal, the parent company of food delivery platform Zomato and quick commerce player Blinkit, has received a goods and services tax demand order of nearly Rs 3.7 crore for the period between April 2019 and March 2020. The development was disclosed by the company in a regulatory filing late on Tuesday.

The order was issued by the Additional Commissioner of State Tax (Appeals), West Bengal, and pertains to an alleged short payment of output GST during the relevant period. According to the filing, Eternal received the order on January 6, 2026, confirming a GST demand of Rs 1.92 crore, interest amounting to Rs 1.58 crore, and a penalty of Rs 19.24 lakh, taking the total demand to Rs 3,69,80,242.

“The Company has received an order on January 6 for the period April 2019 to March 2020 passed by Additional Commissioner of State Tax (Appeals), West Bengal confirming demand of GST of Rs 1,92,43,792 with interest of Rs 1,58,12,070 and penalty of Rs 19,24,380,” Eternal said in its exchange filing.

The company stated that the demand relates to the short payment of output tax, along with applicable interest and penalties. However, it maintained that it disagrees with the findings of the tax authority and believes the order is not sustainable on merit.

“The demand order has been received with respect to short payment of output tax with interest and penalty thereon,” the filing noted. “We believe that we have a strong case on merits which is backed by opinions from our external legal and tax advisors,” the company added.

Eternal also said it intends to challenge the order and will file an appeal before the appropriate authority. The company indicated that it does not expect the demand to have a material financial impact, as it plans to pursue all legal remedies available under the law. “The Company will be filing an appeal against the order before the appropriate authority,” Zomato added.

The development highlights the continued regulatory scrutiny on large food-tech and delivery platforms, particularly around historical tax compliance during the early years of GST implementation. Industry observers note that similar disputes remain common across restaurant aggregators, cloud kitchens, and quick commerce operators as tax interpretations continue to evolve.