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Eternal Ltd, the parent company of food delivery platform Zomato, has received a Rs. 3.69 crore GST penalty notice from West Bengal tax authorities. The notice relates to an alleged short payment of output tax for FY 2019 to FY 2020. The company shared this update through a regulatory filing on 6 January 2026.
The order was issued by the Additional Commissioner of State Tax (Appeals), West Bengal. According to the filing, the tax department reviewed Eternal’s GST records for the period from April 2019 to March 2020. After the review, officials concluded that the company paid less output tax than required under GST rules.
The total demand stands at Rs. 3,69,80,242. This amount includes a GST liability of Rs. 1.92 crore. Interest charges account for Rs. 1.58 crore. The remaining Rs. 19.24 lakh forms the penalty amount. The authorities stated that the demand arose due to a short payment of output tax, along with applicable interest and penalty.
Eternal clarified that the issue relates to an older assessment period. The company stated that it strongly disagrees with the tax demand. Eternal plans to challenge the order before the appropriate authority. The company believes the case has strong merit and relies on advice from external legal and tax experts.
In its exchange filing, Eternal said it will file an appeal against the GST penalty notice. The company added that such disputes are common in large businesses, especially in digital platforms where tax rules often involve detailed interpretation. Eternal also stated that it does not expect any major financial impact from this order.
The update did not create panic in the stock market. Eternal shares closed 0.79% higher at Rs. 280.95 after the announcement. The previous close stood at Rs. 278.75. The steady movement suggests that investors remain calm about the GST notice.
Eternal shares have shown strong performance over a longer period. The stock has gained more than 122% to date. Investors earned over 11% returns during the previous year. However, the stock showed mild weakness in the short term. Shares slipped 1.67% over the past month and remained slightly lower over the last five trading sessions.
Eternal shares touched a 52-week high of Rs. 368.40 on 16 October 2025. The stock hit a 52-week low of Rs. 189.60 on 7 April 2025. As of 7 January 2026, the company’s market value stood above Rs. 2.71 trillion.
Experts say the GST penalty amount is small compared to Eternal’s overall business size. However, such notices highlight rising tax checks on internet-based companies in India. Food delivery and quick commerce platforms face close review due to complex revenue models and delivery charges.
Eternal’s response shows confidence in its tax position. The company continues to focus on legal remedies while maintaining business operations without disruption. The case also reflects stronger enforcement of GST compliance across digital companies.
Also Read – Zomato Parent Eternal Q2 Results: Revenue Hits Rs. 13,590 Cr Despite Profit Dip
