Deepinder Goyal-led Eternal faces GST demand of over Rs 40 crore; here’s what it plans to do next

Eternal Limited, the parent company of Deepinder Goyal-led Zomato, has received three demand orders from the Goods and Services Tax (GST) department amounting to more than Rs 40 crore. The orders, passed by the Joint Commissioner (Appeals)-4, Bengaluru, cover the period between July 2017 and March 2020.

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According to the company’s regulatory filing, the demands include Rs 2.29 crore for short payment of output tax between July 2017 and March 2018, Rs 27.94 crore for excess input tax credit claimed in FY2018-19, and Rs 11.09 crore for similar claims in FY2019-20.

The total includes tax, interest, and penalties. Eternal said it believes the orders are without merit and intends to appeal them.

The latest demands mark the second tax-related disclosure by the company this month. Earlier in August, Eternal was served with a tax demand and penalty of Rs 1.34 crore for FY2021-22.

Eternal, which operates Blinkit, Zomato, District, and Hyperpure, reported a sharp decline in profitability in the first quarter of FY26. Consolidated net profit fell 90% to Rs 25 crore, from Rs 253 crore a year earlier, as investments in its quick commerce arm Blinkit weighed on earnings. Blinkit overtook the food delivery unit Zomato in revenue during the quarter, posting Rs 2,400 crore, more than double its year-ago tally, while Zomato recorded Rs 2,261 crore.

The company is also investing in new verticals, including its 10-minute food delivery service Bistro, which now operates 38 kitchens in Delhi NCR and Bengaluru. Eternal has committed Rs 150 crore toward Bistro, its AI-native customer support platform Nugget, and its Greening India initiative.