Eternal (Zomato, Blinkit Parent) Faces ₹128 Crore GST Demand from UP Authorities; To File Appeal

Eternal Ltd, the parent company of Zomato and Blinkit, has received a Goods and Services Tax (GST) demand order worth over ₹128 crore from the Uttar Pradesh State Tax Department, the company said in a regulatory filing on Sunday. The order, issued by the Deputy Commissioner, State Tax, Lucknow, pertains to the alleged short payment of output tax and excess availment of input tax credit for the period April 2023 to March 2024. The total demand includes ₹64.17 crore in tax, with an equal amount in interest and penalty. Eternal stated that it disagrees with the findings and intends to appeal before the appropriate authority, asserting that it has a strong case on merits. The company, formerly known as Zomato Ltd, rebranded itself as Eternal in March 2025. The GST development comes shortly after Eternal reported a consolidated net profit of ₹65 crore in Q2 FY26, with revenue from operations at ₹13,590 crore, up 183% year-on-year. The firm credited the sharp rise in revenue to the surging growth of Blinkit’s quick commerce segment, which saw net order value (NOV) grow 137% YoY to ₹11,679 crore. Eternal also noted that recent GST rate cuts, effective September 22, have reduced taxes on Blinkit’s typical basket by about 3 percentage points, which is expected to boost demand from Q3 FY26. Despite short-term headwinds such as soft discretionary spending and volatile weather, Founder Deepinder Goyal expressed confidence in a gradual uptick in Zomato’s food delivery growth rate, while CFO Akshant Goyal highlighted the completion of Blinkit’s transition to an inventory ownership model, now covering 80% of its NOV. The company plans to expand Blinkit’s network to 2,100 stores by December 2025, and 3,000 stores by March 2027, underscoring its long-term growth ambitions in India’s quick commerce market. 🏷️ Hashtags: #Eternal #Zomato #Blinkit #GSTDemand #TaxNews #CorporateIndia #QuickCommerce #ZomatoEarnings #BlinkitGrowth #DeepinderGoyal #IndianEconomy #StartupNews