Bengaluru, Karnataka: The Goods and Services Tax (GST) department recently served Zomato Parent Eternal a tax demand of over Rs 40 crore. The order covers the GST demand during the period between July 2017 and March 2020.

As per the company’s filing, the total confirmed tax demand is over Rs 40 crore, which comprises GST of Rs 17.19 crore, interest of Rs 21.42 crore, and a penalty of Rs 1.71 crore. The order was issued by the Joint Commissioner (Appeals)-4, Bengaluru.

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However, Eternal has decided that it will challenge the tax demand before the appropriate authority, adding that it has a strong case on its merits, backed by views from lawyers. “The company will be filing appeals against the orders before the appropriate authority,” it said in its filing.

The company is expected to move with its appeals soon, and its outcome would determine the firm’s tax positions across its businesses. The company on August 21 announced its quick-commerce arm, Blinkit, launched Blinkit Foods, marking an entry into the ready-to-cook and packaged food categories.

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After Zomato rebranded itself in 2025, Eternal Ltd came into being, reflecting its wider business portfolio, and it now includes Zomato’s food delivery platform, Blinkit, Hyperpure, and District. Rather than being a food delivery service, the new identity established the company’s position as a multi-vertical consumer internet firm.