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Food delivery and quick commerce major Zomato on Thursday received 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 Rs 401 crore of GST with interest along with a penalty of Rs 401 crore, amounting to a total of over Rs 803 crore in unpaid tax dues and penalty.

“We believe that we have a strong case on merits which is backed by opinions from our external legal and tax advisors. The Company will be filing an appeal against the order before the appropriate authority,” stated the exchange filing.

The order is for the 28-month period between 29th October 2019 and 31st March 2022. It is pertinent to note that the company listed on domestic bourses through its Rs 9,375 crore IPO during the same period.

During the July-September quarter, Zomato’s food delivery segment—which continues to be its largest vertical—witnessed lower growth as compared to the last two quarters at just a 21% rise in the reporting quarter vs a 27% YOY rise in Q1 and a 28% rise in Q4FY24.

Just last month, the company, in a bid to shield itself from potential regulatory scrutiny, undertook a qualified institutional placement to bring about changes in its captable and give further ownership to domestic investors.

It raised about $1 billion or Rs 8,500 crore from domestic mutual funds including Motilal Oswal, ICICI, Kotak and HDFC.

Zomato, which competes with Swiggy and quick commerce unicorn Zepto along with a host of new entrants, has been focusing on strengthening its key verticals quick commerce, stepping out, food delivery and Hyperpure.

Its house of brands strategy is all set to add another option with its 10-minute food delivery app Bistro, powered by Blinkit, which is under a pilot programme in select pincodes of Delhi-NCR.