Eternal Faces ₹128 Crore GST Demand Order from Uttar Pradesh Tax Authorities

Eternal, the parent company behind food delivery giant Zomato and quick-commerce player Blinkit, has been issued a ₹128 crore goods and services tax (GST) demand order by the Uttar Pradesh tax department. The order relates to alleged discrepancies in output tax payments and excess input tax credits claimed during FY2023–24.

Key Development and Company Statement

In its regulatory filing, Eternal stated that the order was passed by the Deputy Commissioner, State Tax, Lucknow, confirming a total demand of ₹64.17 crore in GST dues, along with ₹64.17 crore in penalties and applicable interest, taking the overall liability to ₹128.34 crore. The company clarified that the order pertains to short payment of output tax and excess availment of input tax credit over the previous financial year.

Eternal said, “This is to inform that the company has received an order on 18 October 2025 for the period April 2023 to March 2024, passed by the Deputy Commissioner, State Tax, Lucknow, Uttar Pradesh, confirming the demand of GST of ₹64,17,43,503 with interest as applicable and penalty of ₹64,17,43,503.”

Impact and Industry Outlook

As per the news reports, Eternal emphasised that it believes it has “a strong case on the merits” and will “file an appeal before the appropriate authority”. The company maintained that its tax positions are fully compliant and supported by documentation. Officials indicated that the order arises from interpretational differences rather than any act of evasion.

Read More: Eternal Share Price Pares Gains Ahead of Q2 FY26 Results!

Eternal Share Price Performance 

As of October 20, 2025, at 9:22 AM, Eternal share price is trading at ₹346.05 per share, reflecting a gain of 0.99% from the previous closing price. 

Conclusion

Eternal remains confident in defending its position and is preparing to appeal the ₹128 crore GST order before the appropriate authority.

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