Eternal Ltd. , the parent company of popular brands Zomato and Blinkit, has received three Goods and Services Tax (GST) orders from the Joint Commissioner-4 in Bengaluru, imposing a total tax demand exceeding Rs 40 crore for the period from July 2017 to March 2020.

GST Demand Breakdown

The company, in its latest disclosure to the stock exchanges, provided a detailed breakdown of the tax demand:

Nature of Violations

The GST orders cite different reasons for the tax demands:

1. For the period July 2017 to March 2018: Short payment of output tax
2. For the periods April 2018 to March 2019 and April 2019 to March 2020: Excess availment of input tax credit

Company's Response

Eternal Ltd. has stated that it plans to file appeals against these orders. The company believes it has a strong case on merits, supported by legal counsel. In its disclosure, Eternal Ltd. mentioned that it does not expect any financial impact on the company due to these orders.

About Eternal Ltd.

Eternal Ltd., formerly known as Zomato Limited, operates four major businesses:

1. Zomato
2. Blinkit
3. District
4. Hyperpure

This development comes as part of the ongoing scrutiny of GST compliance in the rapidly evolving digital economy sector. As companies like Eternal Ltd. continue to grow and diversify their operations, tax authorities are closely examining their tax positions and compliance with GST regulations.

Eternal Limited , formerly known as Zomato, is making significant strides in the quick-service food delivery sector with the establishment of a new subsidiary, Blinkit Foods Limited. This move is part of the company's strategy to expand its 10-minute food delivery offering under the Bistro brand.

New Subsidiary Formation

The board of Eternal Limited has approved the incorporation of Blinkit Foods Limited as a wholly-owned subsidiary. According to the company's disclosure to the stock exchanges, the Certificate of Incorporation for Blinkit Foods Limited was issued by the Ministry of Corporate Affairs on August 21, 2025.

Expansion of Quick Delivery Services

Eternal is currently operating 38 Bistro kitchens across Bengaluru and Delhi-NCR, focusing on its 10-minute food delivery service. This expansion follows the company's decision to shut down its previous rapid food delivery initiative, Everyday, due to insufficient demand.

CEO's Insights

Deepinder Goyal, CEO of Eternal, reported encouraging early demand trends for the Bistro service. He noted that the kitchens are generating incremental orders without affecting Eternal's existing business. The Bistro brand is targeting customers seeking affordable home-style meals and quick snack options delivered within 10 minutes.

Business Model Refinement

While customer traction has been strong, Goyal emphasized the need to refine the business model to achieve profitability. The company plans to continue making calibrated investments in this segment.

Market Response

The market's initial reaction to these developments was slightly negative, with Eternal's shares closing 1.50% lower at Rs 321.65 on the BSE.

Corporate Governance Updates

In other corporate news, Eternal Limited held its 15th Annual General Meeting (AGM) on August 19, 2025, where several key resolutions were passed:

1. Re-appointment of Deloitte Haskins & Sells as Statutory Auditors for a second term of 5 years.
2. Appointment of Chandrasekaran Associates as Secretarial Auditors for a 5-year term.
3. Re-appointment of Sanjeev Bikhchandani as Non-Executive Nominee Director.

These resolutions received overwhelming support from shareholders, with each garnering over 97% votes in favor.

As Eternal Limited continues to evolve its business model and corporate structure, the food delivery sector in India appears set for further innovation and competition.