Zomato parent Eternal gets GST demands, penalty orders amounting to over Rs 40 crore

Zomato parent Eternal said in a filing on Monday that it has been served three service tax demands and penalty orders amounting to over Rs 40 crore.

The Gurugram-based company said that the demand order pertains to goods and services tax (GST) for the period between July 2017 and March 2020, adding that it would file an appeal against the order.

“The demand order has been received with respect to short payment of output tax and excess availment of input tax credit with interest and penalty thereon,” it said in the filing.


The total GST demand amounts to Rs 17.19 crore, along with Rs 21.42 crore in interest and a penalty of Rs 1.71 crore.

“We believe that we have a strong case on the merits, backed by view from lawyers, and do not expect any financial impact on the Company,” it added.

Eternal reported operating revenue of Rs 7,167 crore for the June quarter, up from Rs 4,206 crore a year earlier, while its net profit came in at Rs 25 crore against Rs 253 crore for the first quarter of FY25.

Zomato has received multiple similar demands previously. Last December, it had received a tax demand notice of Rs 803.4 crore from the GST authorities. In April 2024, the company had received a service tax demand and penalty order totalling Rs 11.82 crore.

Last year on April 2, ET reported that Eternal had received a service tax demand and penalty order aggregating to more than Rs 184 crore for non-payment of service tax from October 2014 to June 2017. The tax was determined on the basis of certain sales made by the company’s foreign subsidiaries and branches to customers located outside India.

In the same month, the Karnataka commercial taxes authority had issued the company a tax demand notice of Rs 23 crore for availing excess input tax credit under GST rules.