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Zomato’s parent, Eternal gets a Rs 40 crore tax demand

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Zomato stock sees upgrade from brokerage firms; company expects margin to improve
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Athira Sethu

Kochi, 26 August 2025

Eternal, the proprietor of well-known brands Zomato and Blinkit, has been served with a massive tax demand by the GST department. The firm was served three distinct orders aggregating a total of more than Rs 40 crore, including both the tax demand and the penalties. These orders have been issued by the Joint Commissioner in Bengaluru between July 2017 and March 2020.

The tax notice comprises Rs 17.19 crore as GST dues, Rs 21.42 crore as interest, and a fine of Rs 1.72 crore. Nevertheless, Eternal has made it amply evident that they do not concur with the orders. The organization has mentioned that it finds itself in a solid legal position and is set to appeal the tax notice.

Zomato, Blinkit, District, and Hyperpure are part of Eternal’s business and have claimed that they will submit these orders to the relevant authority for scrutiny. They are hoping that the appeal process will favor them.

The firm announced this on the evening of August 25, 2025, after receiving the orders. Eternal’s move to appeal the orders indicates they believe in their legal standing and will contest the demand in court.

Overall, even though the company has been sent a huge tax bill, it intends to appeal and is hopeful that its chances of having the demand downgraded or reversed are good.

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