Eternal Limited, the parent company of Zomato and Blinkit, has received a goods and services tax (GST) demand order totaling about ₹128.34 crore from the Uttar Pradesh State Tax Department for alleged short payment and excess input tax credit claims .
Details of the Demand
The Deputy Commissioner of State Tax, Lucknow, issued the order on October 18, 2025, covering the financial year from April 2023 to March 2024 . The notice includes:
• ₹64.17 crore GST demand
• ₹64.17 crore penalty under Section 74 of the CGST and UPGST Acts
• Additional interest applicable on the outstanding tax
Tax officials cited short payment of output tax and excess availment of input tax credit as the reasons for the order .
Eternal’s Response
In a regulatory filing to the stock exchanges, Eternal stated that it plans to contest the order and believes it has a “strong case on the merits”. The company intends to file an appeal before the appropriate authority . Eternal also said it does not expect any financial impact, suggesting confidence in securing a favorable outcome .
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