Zomato’s parent company Eternal has been served fresh tax demands and penalties of ₹40.32 crore by the goods and services tax (GST) authorities for the period between July 2017 and March 2020.
The order, disclosed in a stock exchange filing on Monday, points to alleged short payment of output tax and excess availment of input tax credit. Eternal has been asked to pay ₹17.19 crore in GST, along with ₹21.42 crore in interest and ₹1.71 crore in penalties.
The company said it intends to appeal against the order, stressing that its legal advisors see merit in its case. “We believe we have a strong position and do not expect any financial impact,” the company said.
This is not the first time the Gurgaon-based food delivery major has been pulled up by tax authorities. In December 2024, Eternal was slapped with a massive ₹803.4 crore demand from GST officials. Earlier, in April 2024, it received an order of ₹11.82 crore, while in 2023 it faced service tax claims of more than ₹184 crore for the period between October 2014 and June 2017.
The new order comes at a time when Zomato’s financial performance shows both top-line growth and profit pressure. For the quarter ended June 2025, the company reported revenue of ₹7,167 crore, a sharp jump from ₹4,206 crore a year earlier. However, net profit fell to ₹25 crore compared to ₹253 crore in the same period last year, hit by higher expenses and promotions.
With the food delivery giant already navigating multiple tax disputes, the latest demand adds to a growing list of regulatory challenges that continue to shadow its rapid growth trajectory.
