Bengal GST dept issues ₹3.7 crore demand notice to Zomato, including interest and penalty

Eternal Limited, the parent company of the prominent food delivery platform Zomato, has received a significant GST demand notice exceeding ₹3.7 crore from the West Bengal Goods and Services Tax department. The notice pertains to the financial year 2019-20, during which the department alleges a shortfall in the payment of output tax. According to a regulatory filing by the company, the order was passed by the Additional Commissioner of the State Tax Department, following a thorough audit of records from that period.

The total demand of ₹3.7 crore is meticulously broken down into three components: a principal tax amount of approximately ₹1.92 crore, an interest charge of ₹1.58 crore, and a penalty of around ₹19 lakh. The fact that the interest is nearly as high as the principal tax highlights the accumulation over the five-year period since the alleged discrepancy occurred. Eternal Limited officially received the order on January 6, 2026, and has since been reviewing its legal standing.

In its defense, Eternal Limited has stated that it disagrees with the findings of the tax department. The company maintains that its tax calculations and payments were accurate based on the regulations prevalent during the expansion phase of Zomato’s operations in 2019. It clarified that it intends to challenge the order at an appellate forum, asserting that it has a strong case and necessary documentation to prove compliance.