Zomato Ltd., the food delivery provider received a Goods and Service Tax (GST) demand notice of ₹9.45 crore from the Assistant Commissioner of Commercial Taxes (Audit), Karnataka, said the company in a BSE exchange filing.

The tax regulator of Karnataka has demanded a GST of ₹5,01,95,462 ( ₹5.01 crore), which will be marked up with an interest charge of ₹3.93 crore, and a penalty of ₹50.19 lakh, bringing the total up to ₹9.45 crore, according to the filing.

The company has received the tax order for the financial year 2019-20 under the audit of GST returns and accounts, according to the filing.

Zomato shares closed 0.10 per cent higher at ₹200.35 on Friday, June 28th compared to the previous close at ₹200.15.

"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," said the company in response to the tax notice.

This is not the first time the food delivery company got a tax notice. Zomato received a tax notice from the Additional Commissioner, Central Goods and Services Tax, Gurugram in 2021. That notice demanded the company to pay ₹11.82 crore including interest and penalty charges, according to media reports of that time. The company had the same response of taking a stance, appealing against the tax order.