Zomato parent Eternal hit with GST demand worth ₹40cr
What's the story
Eternal, the parent company of popular brands Zomato and Blinkit, has been hit with a hefty GST demand by Bengaluru tax authorities. The demand, which exceeds ₹40 crore in total, includes tax dues as well as interest and penalties. The orders were issued for the period between July 2017 and March 2020.
Legal
Three orders received on August 25
Eternal, which operates four major businesses, Zomato, Blinkit, District and Hyperpure, has announced its intention to appeal against the tax demand orders. In a regulatory filing, the company said it had received three orders on August 25 for the period from July 2017 to March 2020. The total GST demand confirmed by these orders is ₹17.19 crore with interest of ₹21.42 crore and penalty of ₹1.72 crore.
Appeal
Appeal to be filed against orders
Eternal has expressed confidence in its legal position, backed by advice from lawyers. The company said it would be filing necessary appeals against the orders before the appropriate authority. This incident highlights the growing tax scrutiny faced by tech companies in India and their efforts to navigate complex tax regulations.