In a regulatory filing with the Bombay Stock Exchange (BSE), Zomato's parent company Eternal disclosed that it has received a Goods and Services Tax (GST) demand notice amounting to ₹9.63 crore. The notice, issued on June 9, 2026, pertains to the financial year spanning April 2023 to March 2024.
Details of the GST Demand Notice
The order was received by the company on June 9, 2026, and relates to the period from April 2023 to March 2024. The demand includes tax, interest, and penalty as per the provisions of the GST Act. Eternal has stated that it is reviewing the order and will take appropriate legal recourse to contest the demand.
Company's Response and Next Steps
In the BSE filing, Eternal mentioned that it believes it has a strong case on merits and will challenge the order before the appropriate appellate authority. The company assured stakeholders that the notice does not impact its financial operations or ongoing business activities significantly. Eternal also emphasized its commitment to compliance with all tax regulations.
The development comes at a time when the food delivery giant has been expanding its footprint and diversifying its business verticals. The GST demand notice is expected to be contested vigorously by the company's legal team.
Impact on Zomato and Eternal
Analysts suggest that while the amount is not material relative to Eternal's overall financials, such notices can lead to increased scrutiny from tax authorities. However, the company's proactive disclosure and stated intent to challenge the order are seen as positive steps. Investors are likely to monitor the situation closely for any further developments.
Eternal, which also operates other businesses under its umbrella, has not yet provided a timeline for the resolution of the dispute. The company continues to focus on its core operations and growth strategies.
