Eternal received a ₹3.69 crore GST demand from West Bengal authorities
Order includes ₹1.92 crore tax liability, ₹1.58 crore in interest& ₹19.24 lakh penalty
Management plans to appeal the order, citing a "strong case on merits"
Deepinder Goyal’s Eternal on Tuesday said it has received a Goods and Services Tax demand order of ₹3.69 crore for the period from April 2019 to March 2020. The order was issued by the Additional Commissioner of State Tax (Appeals), West Bengal, the company said in a regulatory filing.
Eternal said the demand includes a GST liability of ₹1.92 crore, interest of ₹1.58 crore and a penalty of ₹19.24 lakh. The company added that it believes it has a strong case on merits and intends to challenge the order by filing an appeal before the appropriate authority.
1 January 2026
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The filing also noted that Eternal has disclosed all required details under Regulation 30 of the SEBI Listing Regulations and the relevant SEBI circular.
The Order
The demand relates to an alleged short payment of output tax for the 2019-20 financial year and includes statutory interest and a penalty. While the amount is modest relative to Eternal’s overall scale, it adds to a series of compliance and tax matters that listed internet platforms are required to manage carefully.
For investors, even relatively small regulatory orders can trigger short-term volatility and prompt questions around legacy accounting practices or differences in interpretation between companies and tax authorities.
Eternal’s Financial
The development comes amid a mixed financial backdrop for Eternal. The company’s shares have retreated sharply from earlier highs, down about 32% from their lifetime peak, as strong gains in prior years gave way to profit-booking and renewed valuation concerns.
Eternal reported consolidated revenue of ₹13,590 crore in Q2 FY26, but net profit fell sharply to ₹65 crore, a 63% year-on-year decline from ₹176 crore, highlighting margin pressure despite continued top-line growth. Blinkit, the quick-commerce arm, remained a key growth engine during the quarter, posting revenue of ₹9,891 crore. Analysts and market commentators have increasingly emphasised the need for Eternal to strike a balance between aggressive expansion and a clearer path to sustainable profitability.
