Eternal Limited , a prominent company in its sector, has recently received a significant GST demand order from the Uttar Pradesh tax authorities. The order, issued by the Deputy Commissioner, State Tax, Lucknow, Uttar Pradesh, pertains to alleged discrepancies in tax payments for the fiscal year 2023-2024.

Details of the GST Demand

The tax authority has raised concerns over two primary issues:

1. Short payment of output tax
2. Excess availment of input tax credit

The financial implications of this order are substantial, as outlined in the table below:

Timeline and Company's Response

• Date of Order Receipt: 18 October 2023
• Period Under Scrutiny: April 2023 to March 2024

Eternal Limited has stated that it believes it has a strong case on merits. The company plans to file an appeal against the order, indicating its intention to contest the tax authority's claims.

Potential Impact

Despite the substantial amount involved, Eternal Limited has expressed confidence in its position. The company anticipates no financial impact due to this matter, suggesting a high level of certainty in its ability to successfully challenge the order.

Implications and Next Steps

This development highlights the ongoing scrutiny of GST compliance by tax authorities. For Eternal Limited, the immediate next step will be to file an appeal against the order. The outcome of this appeal could have significant implications not only for the company but also for other businesses operating in Uttar Pradesh and potentially across India.

Investors and stakeholders of Eternal Limited will likely be watching closely as this situation unfolds, particularly focusing on:

1. The grounds on which the company plans to contest the order
2. The timeline for the appeal process
3. Any potential short-term financial provisions the company might make in response to this demand

As the situation develops, more details may emerge regarding the specific nature of the alleged discrepancies and the company's defense strategy.

Eternal Ltd. , the company behind popular brands Zomato and Blinkit, has received a significant GST demand order from Uttar Pradesh tax authorities. The order, totaling over Rs 128 crore, raises questions about the company's tax compliance and potential financial implications.

Details of the GST Demand

The order, issued by the Deputy Commissioner, State Tax, Lucknow, includes the following components:

The demand covers the period from April 2023 to March 2024 and relates to alleged short payment of output tax and excess availment of input tax credit.

Company's Response

Eternal Ltd. has stated that it believes it has a strong case on merits and intends to file an appeal against the order before the appropriate authority. The company's stance suggests confidence in its tax practices and a willingness to challenge the demand through legal channels.

Implications and Context

This GST demand comes at a time when Eternal Ltd. has been undergoing significant changes. The company rebranded itself from Zomato to Eternal in March, reflecting its evolving business model and expanding portfolio beyond food delivery.

The substantial tax demand may raise concerns among investors about potential financial impacts and the company's tax management practices. However, Eternal's decision to appeal the order indicates that it does not expect any immediate financial impact.

Regulatory Compliance

In compliance with SEBI regulations, Eternal Ltd. has disclosed this information to the stock exchanges. The company's prompt disclosure aligns with the transparency requirements for listed entities, ensuring that shareholders and the market are informed of significant developments.

As the situation unfolds, stakeholders will be watching closely to see how Eternal navigates this tax challenge and what implications it may have for the company's financial health and market perception.