Eternal Limited (formerly Zomato) has received a tax demand order from the Deputy Commissioner of State Tax in Lucknow, Uttar Pradesh. The order, dated 19 August 2025, is related to the financial year April 2020 to March 2021.
According to the company’s official filing, the Goods and Services Tax (GST) authority has raised a demand of ₹14.76 lakh for short payment of taxes. In addition to this, a penalty of ₹14.76 lakh has also been imposed. Interest on the unpaid tax is also payable. The order has been issued under Section 74 of the Central GST Act, 2017 and the Uttar Pradesh GST Act, 2017.
The tax demand is linked to an alleged short payment of tax collected at source (TCS) and output tax. The tax authorities claim that the company did not fully meet its tax obligations for the mentioned period. As a result, the department has issued the demand notice along with penalty and interest charges.
Eternal Limited, however, believes that it has a strong case. The company has stated that it will file an appeal against the order with the appropriate authority. It also said that this development will not have any major financial impact on its business.
This development was disclosed by the company as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This rule ensures that listed companies inform shareholders and investors about important legal and regulatory matters.
Eternal (Zomato) has achieved a major milestone in the stock market. In recent weeks, the company’s market cap has reached nearly ₹3.10 lakh crore, surpassing HAL’s market cap of ₹3 lakh crore. Zomato share price has also jumped by 20%, rising from ₹256 to ₹322. This reflects growing investor confidence in technology and quick commerce businesses like Eternal.
On the other hand, HAL has faced a slowdown. HAL reported a 4.1% year-on-year drop in net profit to ₹1,377 crore. HAL share price has also declined by 3.8% in the past month, falling from ₹4,651 to ₹4,475.
Despite receiving a GST demand order, Eternal Limited remains confident about its legal position and business outlook. With a strong revenue jump and increasing investor confidence, the company appears to be focused on its long-term growth plans while addressing regulatory challenges.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Aug 22, 2025, 9:54 AM IST
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