Zomato Parent Eternal Hit With ₹3.7 Crore GST Demand; Plans Appeal

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AuthorRiya Kapoor|Published at:
Zomato Parent Eternal Hit With ₹3.7 Crore GST Demand; Plans Appeal
Overview

Zomato's parent entity, Eternal, has been issued a Goods and Services Tax demand order for ₹3.7 crore. The order, which includes interest and penalties, pertains to short payments for the April 2019 to March 2020 fiscal year. Authorities in West Bengal passed the order. Eternal stated it has a strong case and intends to file an appeal.

GST Order Issued to Zomato's Parent

Eternal, the parent company of online food delivery giant Zomato and quick commerce platform Blinkit, has received a significant Goods and Services Tax (GST) demand order. The order, issued by the Additional Commissioner of State Tax (Appeals) in West Bengal, mandates a payment of ₹3,69,80,242. This sum comprises the base GST demand, accumulated interest, and penalties.

Details of the Demand

The demand pertains to the period between April 2019 and March 2020. Eternal reported that the order confirms a GST demand of ₹1,92,43,792, coupled with interest amounting to ₹1,58,12,070 and a penalty of ₹19,24,380. The company disclosed this information in a regulatory filing late on Tuesday evening.

Company Response and Appeal

Despite the substantial demand, Eternal expressed confidence in its position. The company stated in its filing that it "believes it has a strong case on merits." Consequently, Eternal confirmed its intention to file an appeal against the order before the appropriate tax authority. This move signals the company's intent to contest the ruling.

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