Eternal (Zomato & Blinkit Owner) Faces INR 40 Crore GST Demand Orders; Apparel Industry Seeks Tax Relief

Eternal, the owner of the Zomato and Blinkit brands, has been subject to three notices from the Goods and Services Tax department. The orders amount to more than INR 40 crore in tax demands, including interest and penalties, as reported by PTI.

According to the report, the Joint Commissioner-4 Bengaluru issued all of these directives between July 2017 and March 2020. Zomato, Blinkit, District, and Hyperpure are the four main companies that make up Eternal.

Zomato & Blinkit Owner Plans to Challenge Tax Notices

The company announced that it will challenge the tax demand orders. In a late-night regulatory filing on August 25, PTI cited Eternal as stating that the company received three orders on August 25, 2025, from the Joint Commissioner, Appeals-4, Bengaluru, confirming the total demand of INR 17,191,176,2 for GST, along with interest of INR 21,421,479.1 and a penalty of INR 1,719,117.7 for the period July 2017 to March 2020.

Karnataka Hosiery & Garment Association Pushes for GST Rationalisation

The Karnataka Hosiery and Garment Association advocated on August 25 for the Goods and Services Tax (GST) Council to rationalise tax slabs on clothing and hosiery items and to include petroleum products in the indirect tax system.

According to the group, different GST rates on clothing lead to misunderstandings, make compliance more difficult, and increase consumer expenses.

In a statement to Finance Minister Nirmala Sitharaman and members of the GST Council, Sajjan Raj Mehta, the chairman of the association's taxation committee, was quoted by PTI as saying that a uniform 5% GST rate for all clothing and hosiery products would lower price volatility, reduce inflationary pressures on the general public, improve compliance, lessen classification disputes, and create a level playing field for MSMEs and organised players.

Why Industry Groups Want Petroleum Products Under GST?

Noting that petrol, diesel and other fuels that are not subject to the tax system result in cascading taxes and increased input costs for many industries, the group also pushed for the inclusion of petroleum products under the GST.

It stated that "their inclusion will ensure a uniform tax structure across states, avoiding wide fuel price disparities, improve transparency, lower overall costs of goods and services, and benefit the logistics and textile sectors where transportation is a major expense."