Now, Eternal Get Two Fresh GST Demand Notices Worth INR 28 Cr

Adding to its tax troubles, Zomato and Blinkit parent Eternal has received two fresh GST demand orders totalling about INR 27.6 Cr from tax authorities in the state of West Bengal.

The orders were passed by the Additional Commissioner of State Tax (Appeals), West Bengal, under Section 73 of the CGST Act, 2017 and West Bengal Goods and Services Tax with respect to short payment of output tax covering the period from April 2020 to March 2022.

While GST demand for FY21 amounts to INR 9.85 Cr, the GST demand for FY22 stood at INR 17.7 Cr.

The company has been facing tax orders from authorities across the nation over the past few years. As has been the case for its prior orders, Eternal intends to challenge both of the aforementioned orders as it believes that it has a strong case, based on advice from its legal and tax advisors.

However, this is the third tax demand the Zomato parent has received from tax authorities in West Bengal this week itself.

Earlier on Tuesday (January 6), the company had received an order worth INR 1.92 Cr for short payment of output tax for FY20. The company faced tax troubles in the state of West Bengal in 2024 as well, receiving two orders worth INR 27.55 Cr.

Beyond West Bengal, Eternal has been facing larger tax demands in UP, Delhi, Tamil Nadu, Maharashtra and Karnataka. In October 2025, the company received a GST demand order totalling INR 128.4 Cr, its largest order till date, from tax authorities in UP for FY23.

The mounting tax disputes come at a time when Eternal’s business mix has been undergoing a sharp shift.

While the company has expanded well beyond food delivery into quick commerce through Blinkit, B2B restaurant supplies via Hyperpure, and event and movie ticketing via District, regulatory scrutiny around GST has also intensified, particularly after the rollout of “GST 2.0”.

Under the revised GST framework, delivery companies are required to pay 18% GST on delivery charges when the delivery partner is not GST-registered.

This tax applies to delivery fees charged to customers and affects roughly a quarter of Zomato’s orders where delivery is not free.

Beyond the GST troubles, Eternal also currently finds itself in the midst of controversy around gig workers’ payout and working conditions, with the workers going on strike on two of the busiest days for the platforms – December 25 and 31.

Meanwhile, in Q2 FY26, Eternal’s consolidated net profit fell 63% year-on-year to INR 65 Cr, even as operating revenue surged 183% YoY to INR 13,590 Cr, driven largely by Blinkit’s transition to an inventory-led model and rapid expansion of dark stores.

Eternal’s shares ended 0.91% higher at INR 283.5 on BSE today.

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