New Delhi: Eternal, the parent company of Zomato and Blinkit, has received a Goods and Services Tax (GST) demand order of approximately ₹3.7 crore for the period April 2019 to March 2020. The order was issued by the Additional Commissioner of State Tax (Appeals) of West Bengal and is related to alleged underpayment of output tax.
The company disclosed this information in a regulatory filing late Tuesday evening.
Full details of tax, interest, and penalty
According to exchange filings, the notice received by the company is as follows:
₹1.92 crore as GST,
₹1.58 crore as interest, and
₹19.24 lakh as penalty.
The total demand amounts to ₹3,69,80,242. The company stated that this demand relates to alleged underpayment of output tax for the relevant period, along with the interest and penalty thereon.
Company to challenge the order
Eternal stated that it is confident of its position and the case is supported by the opinions of its external legal and tax advisors. The company said in its statement, “We believe we have a strong case based on the facts and the law.”
The company also clarified that it will appeal the order to the appropriate authority and does not expect the demand to have a significant financial impact on its business, as it will exhaust all legal options.
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