Eternal gets Rs 1.34 Cr GST demand order for FY22, plans to appeal

Deepinder Goyal-led Eternal has received a GST a total demand order of Rs 1.34 crore for the financial year 2021-22, the company said in a stock exchange filing.

The Deputy Commissioner of State Tax, Lucknow, Uttar Pradesh, passed the order on August 6 under Section 74 of the CGST and UPGST Acts. The total amount includes Rs 67.25 lakh as tax demand and an equal amount as penalty, in addition to applicable interest.

The demand was raised on account of alleged short payment of output tax and excess availment of input tax credit, the company said.

“We believe that we have a strong case on merits and the company will be filing an appeal against the order before the appropriate authority,” stated Eternal in a filing.

In December last year, Zomato was slapped with an order from the government for non-payment of goods and services taxes (GST) on delivery charges. The order, given by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, demands about Rs 401 crore of GST with interest along with a penalty of around Rs 401 crore, amounting to a total of over Rs 803 crore in unpaid tax dues and penalty.

In February earlier this year, Zomato said that tax authorities dropped their demand for Rs 5.9 crore unpaid GST from the company. It received a favourable order from the Additional Commissioner, Central Goods and Services Tax, Gurugram, for the period July 2017 to March 2021, to forgo a Goods and Services Tax (GST) amount of Rs 5.90 crore.

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