Tax troubles are brewing for Zomato as its key subsidiary Eternal Consumer Brands slaps with a hefty Rs 3.7 crore GST demand order. The notice from GST officials targets the company behind Blinkit, Zomato’s quick commerce powerhouse, signaling intensified oversight on fast-growing online ventures.
Details emerging reveal the demand notice covers discrepancies in GST liabilities for transactions linked to Eternal’s operations. As Zomato pivots aggressively into rapid delivery via Blinkit, authorities are probing how these models handle tax obligations on commissions, deliveries, and supply chain activities.
Eternal has confirmed the development, assuring stakeholders of a thorough review. ‘Our teams are meticulously assessing the notice and will take necessary steps in line with regulations,’ the firm said in a brief statement. This isn’t isolated; similar probes have hit peers in the e-commerce space, reflecting a push for uniform tax enforcement.
Blinkit’s meteoric rise has been central to Zomato’s strategy, transforming it from a meal-ordering app to a 10-minute grocery deliverer. However, such expansion invites regulatory gaze, especially on GST inflows from millions of daily orders. Analysts warn that protracted disputes could strain cash flows amid heavy investments in warehousing and rider fleets.
Market reaction was swift, with Zomato’s stock registering a soft opening. Broader implications loom for the quick commerce boom, where firms balance hyper-growth with compliance. Eternal’s response strategy—whether settlement, appeal, or challenge—will be watched closely.
In the larger picture, this GST notice exemplifies the evolving tax framework grappling with digital disruptions. As India fine-tunes rules for platforms blending retail, logistics, and tech, companies must fortify their compliance machinery. Eternal’s handling of this Rs 3.7 crore hurdle could define best practices for the industry moving forward.