Online food delivery major Zomato's parent entity, Eternal, has been slapped with a significant goods and services tax (GST) penalty notice amounting to ₹3.69 crore. The notice, issued by West Bengal tax authorities, pertains to the financial year April 2019 to March 2020.
Details of the GST Demand and Penalty
According to a regulatory filing made by Eternal to the stock exchanges on Tuesday, 6 January 2026, the company received an order from the Additional Commissioner of State Tax (Appeals), West Bengal. The order confirms a total demand of ₹3,69,80,242 (over ₹3.69 crore).
The breakdown of this amount is as follows:
- GST demand: ₹1,92,43,792
- Interest levied: ₹1,58,12,070
- Penalty imposed: ₹19,24,380
The company stated that the demand arose due to an alleged short payment of output tax for the specified period, along with the consequent interest and penalty.
Eternal's Response and Plan to Appeal
Eternal has stated its intention to challenge the GST penalty order. In its filing, the company expressed confidence in its legal standing.
"We believe that we have a strong case on merits which is backed by opinions from our external legal and tax advisors. The company will be filing an appeal against the order before the appropriate authority," Eternal informed the bourses.
This indicates that the firm is preparing for a legal contest and does not accept the tax authority's findings.
Stock Performance and Market Position
Despite the regulatory setback, Eternal's shares showed resilience in the market. As per BSE data, the stock closed 0.79% higher at ₹280.95 on Wednesday, 7 January 2026, compared to the previous close of ₹278.75.
The company's stock has delivered substantial long-term gains, surging over 122% since its listing. It has given investors returns of more than 11% in the past one year. However, the stock has seen some recent pressure, declining 1.67% over the last month and 0.46% in the past five trading sessions.
Eternal's shares touched a 52-week high of ₹368.40 on 16 October 2025 and a 52-week low of ₹189.60 on 7 April 2025. The company's market capitalisation stood at a formidable over ₹2.71 trillion as of the market close on 7 January 2026.
The development highlights the ongoing scrutiny of large technology-driven consumer firms by tax authorities. Investors will be watching closely as Eternal navigates the appeal process against this substantial GST demand.
