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Tag: Eternal

  • Eternal Faces INR 128 Cr GST Demand and Penalty Order from Uttar Pradesh Tax Authorities

    The company that owns the Zomato and Blinkit brands, Eternal, announced on 19 October that the Uttar Pradesh tax authorities had issued a demand order for goods and services tax (GST) along with more than INR 128 crore in applicable interest and penalties. The Deputy Commissioner, State Tax, Lucknow, Uttar Pradesh, issued a demand order about the overuse of input tax credits and the underpayment of output taxes for the April 2023–March 2024 period, together with associated interest and penalties. Eternal stated that it will appeal the order to the proper authority since it feels it has a compelling argument on its grounds.

    Eternal to Challenge the Order

    The order was issued in accordance with Section 74 of the Central GST and Uttar Pradesh GST Acts, per the filings made with the BSE and National Stock Exchange. The corporation has been accused by the tax administration of underpaying output tax and overusing input tax credits. Eternal Limited declared in its disclosure that it would challenge the order and that it was confident in its legal position.

    “The company will be appealing the order before the proper authority because we think we have a strong case on merits,” the business said. Investors were reassured by the food delivery and restaurant aggregator platform, which had previously changed its name from Zomato to Eternal Limited, that it does not anticipate any financial consequences from this event. This shows that the business is optimistic about getting a good result from the appeals process.

    IT Department Putting a Scanner on E-Commerce

    In order to ensure GST compliance, Indian tax officials have been closely monitoring e-commerce and service platforms at the time of the order. The large penalty amount, which is equivalent to the initial tax demand, is said to represent the authority’s assessment that the infraction was serious. The impact of this revelation on investor sentiment towards the company, which has been striving for consistent profitability in recent quarters, will be widely monitored by market analysts.

    Quick Shots

    •Eternal
    receives a GST demand and penalty order worth     ₹128 crore from Uttar Pradesh tax authorities.

    •Alleged
    overuse of input tax credits and underpayment of output taxes for April
    2023–March 2024.

    •Issued
    under Section 74 of Central GST & UP GST Acts by Deputy Commissioner,
    State Tax, Lucknow.

    •Eternal
    plans to appeal, citing a strong legal case on merits.

    •Company
    assures investors it does not expect any financial impact from the order.

    •Indian
    tax authorities are increasingly scrutinizing e-commerce and service
    platforms for GST compliance.

    •The penalty amount matches the
    initial tax demand, signaling a serious infraction assessment.

  • Zomato Rebrands to Eternal Ltd, Expands Beyond Food Delivery with New Name

    Deepinder Goyal-led Zomato has announced that it has officially changed its company name to “Eternal Ltd,” with the board approving the move on February 6, 2025. This change will apply to the company itself, but the Zomato brand and app will remain the same. Along with the new name, the company’s stock ticker symbol will also shift from “Zomato” to “Eternal.”

    The decision to rebrand comes after Zomato began using the name “Eternal” internally when it acquired Blinkit. The company felt that this name better represented its broader ambitions as it expanded beyond its original focus on food delivery. Eternal will now encompass four major businesses: Zomato, Blinkit, District, and Hyperpure. This rebranding reflects the company’s shift towards becoming a more diversified entity, with operations extending beyond just the food delivery sector.

    While the rebrand marks a major transition for the company, the Zomato app, which is a key part of its business, will continue to operate under the same name. The focus of the name change is to differentiate the company’s broader operations, which have evolved a lot over time. By adopting the name Eternal, Zomato aims to position itself for future growth and success across multiple business segments.

    The timing of the name change coincides with some challenges in the food delivery industry. Zomato, along with its competitor Swiggy, has seen a slowdown in demand since November 2024. Despite these challenges, the company reported a 64% year-on-year increase in revenues for Q3FY25, reaching INR 5,404 crore. However, its profit after tax (PAT) dropped by 57%, standing at INR 59 crore compared to INR 138 crore in the same quarter the previous year.

    The rebranding to Eternal is part of Zomato’s effort to diversify its offerings and adapt to changing market conditions. The company’s decision to rename itself aligns with its broader goals of evolving beyond food delivery, with new initiatives in areas like grocery delivery and food sourcing through Blinkit and Hyperpure.

    The approval from the board is the first step, and the company will now seek approval from its shareholders to finalise the name change. As Zomato transitions into Eternal, it hopes to solidify its position as a leader in multiple sectors, while continuing to navigate the complexities of the food tech industry.

    Zomato: Founders | History | Success Story | Growth | Funding
    Zomato is a reputed Indian foodtech company led by Deepinder Goyal. Here’s the story of Zomato’s growth, which covers Zomato valuation, funding, investors and more!
    StartupTalkyRishabh Rathi