E-commerce Giant Eternal Faces Significant GST Challenge

Eternal, parent of Zomato and Blinkit, was hit with a GST demand of Rs 3.7 crore for underpayment from April 2019 to March 2020. They argue a strong defense and plan an appeal. The Additional Commissioner of State Tax in West Bengal issued the order.

Eternal, the parent company of Zomato and Blinkit, is grappling with a significant financial demand, as the West Bengal State's Additional Commissioner of State Tax has issued a GST demand order. The order, summing up to Rs 3,69,80,242, covers the period from April 2019 to March 2020, inclusive of interest and penalty.

The demand pertains to a shortfall in output tax payments, raising concerns for Eternal. According to a late Tuesday regulatory filing, the company is poised to challenge the order, citing confidence in a robust defense on the merits of their case.

Eternal elaborated in their filing that on January 6, 2026, an order confirmed a GST demand of Rs 1,92,43,792, coupled with interest and penalties amounting to an additional Rs 1,77,36,450. The firm is set to appeal the decision, seeking a reversal from the appropriate authorities.

(With inputs from agencies.)