Uttar Pradesh issues ₹128.4 crore GST demand to Zomato-Blinkit parent Eternal
Order alleges underpayment and excessive input tax credit
Eternal plans to appeal, claiming a strong case
Tax troubles have intensified for Zomato and Blinkit’s parent company, Eternal. The foodtech has been hit with a Goods and Services Tax (GST) demand order worth ₹128.4 crore from Uttar Pradesh tax authorities. The order – comprising ₹64.2 crore in tax demand and an equal amount as penalty – was issued by the Deputy Commissioner of State Tax, Lucknow.
The order alleged underpayment of output tax and excessive input tax credit claims, along with accrued interest. “….confirming demand of GST of ₹64.2 Cr with interest as applicable and penalty of ₹64.2 Cr,” the company said in an exchange filing on October 19.
The company said it intends to challenge the order, asserting that it has “a strong case on merits” and will appeal before the relevant authority. This latest notice further deepens Eternal’s mounting tax troubles in recent months.
Eternal saw its largest GST demand of ₹401.7 crore from Maharashtra tax authorities at the end of 2023. Then in 2024, the company received four GST notices of ₹202 crore, ₹4.6 crore, ₹17.7 crore, and ₹803.4 crore in May, August, September, and December, respectively.
In August 2025, Zomato parent Eternal received two GST demands — ₹1.3 crore from Uttar Pradesh and ₹40 crore from Karnataka authorities. The GST demand notice from UP came days after the foodtech disclosed its financial results for Q2 FY26.
Eternal Q2 FY26 Financials
Eternal reported nearly a three-fold jump in its revenue for the quarter ending September 2025, according to an exchange filing on Thursday. However, rising expenses led to a decline in the company’s net profit.
The Deepinder Goyal-led company saw 183% a rise (year-on-year) in the operating revenue at ₹13,590 crore during the quarter under review. However, its net profit fell 63% (y-o-y) to ₹65 crore, as compared to ₹176 crore in the September quarter of financial year ending March 2025.
The food delivery’s net order value (NOV) grew 14% year-on-year, showing a slight improvement over the 13% YoY growth recorded in the previous quarter.
The growth rate appears to have bottomed out in Q1 FY26 and is beginning to recover, albeit gradually. The company continues to remain comfortably within its long-term guidance range, maintaining an Adjusted EBITDA margin of 5.0–6.0% as a percentage of net order value (NOV).
Its quick commerce arm saw the net order value NOV) accelerated to 137% (y-o-y), the highest in the last ten quarters. Blinkit has also added 272 new stores during the second quarter of FY26, taking the total store count to 1,816 so far.
The company further aims to get 2,100 stores by December 2025, as compared to the previous guidance of 2,000 stores. And by March 2027, Blinkit is expected to get 3,000 stores in total across the country.
