Eternal Ltd, formerly known as Zomato, has been served three GST orders for the period between July 2017 and March 2020, with a combined demand exceeding ₹40 crore.
Tax Snapshot:
- GST: ₹17.19 crore
- Interest: ₹21.42 crore
- Penalty: ₹1.71 crore
Eternal has confirmed that it will challenge the orders before the appropriate authority. “We believe that we have a strong case on merits, backed by legal opinions,” the company stated in its regulatory filing. Appeals are expected in the coming weeks.
Context & Expansion:
The rebrand from Zomato to Eternal Ltd in 2025 marked a strategic shift from a food delivery platform to a multi-vertical consumer internet company. The group now includes Blinkit, Hyperpure, and District. Eternal’s quick-commerce arm Blinkit recently launched Blinkit Foods, entering the ready-to-cook and packaged food segment to strengthen its presence in the high-growth grocery and convenience market.
Strategic Implications:
The GST notice underlines the regulatory scrutiny faced by rapidly scaling startups. How Eternal manages the legal challenge could influence tax compliance strategies across its multiple businesses.
Investor & Market Watch:
Despite the notice, investor confidence remains strong. Active NSE investors have grown 44% over the past year to 47.9 million, highlighting market faith in Eternal’s diversified growth strategy.
Final Take:
Eternal Ltd’s GST case illustrates the challenges Indian consumer internet firms face as they diversify and scale. The resolution may set a benchmark for how multi-vertical startups navigate regulatory compliance while pursuing expansion.
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